Saudi Arabia needs balancing act on the economy | GulfNews.com

Saudi Arabia needs balancing act on the economy | GulfNews.com:

"Saudi Arabia is just about the only energy producer so far unaffected by the shale revolution. Yet despite appearances, Saudi Arabia’s financial and oil market strength is brittle. Saudi policymakers must successfully deal with a series of problems by the end of the decade.
Individually, each of the problems should be easy to manage, but in combination they could amount to a “perfect storm” that presents the kingdom’s leaders with the most difficult challenge since the collapse in oil prices in 1998. Saudi production of crude oil and other liquids hit a record 11.7 million barrels per day in 2012, according to the US Energy Information Administration (EIA).
Government oil revenues amounted to 1.14 trillion riyals (Dh1.11 trillion, $305 billion), up from 670 billion in 2010 and almost double the figure included in the budget, according to the IMF. While other energy producers have been hit by growing competition from shale, Saudi Arabia has benefited from output problems affecting the North Sea and other members of the Organisation of Petroleum Exporting Countries (Opec), which have kept prices above $100 per barrel and enabled the kingdom to increase its market share."

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