By John R. Presley (auth.)
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Additional info for A Guide to the Saudi Arabian Economy
1974 1975 1976 /977 1978 * refers to Aramco Proved Petroleum Reserves. SouRcEs Various SAMA Reports; Oil and Gas Journal, March 1982; Aramco Annual Reports. d. b. b. l. 2. 3. 4. 6 116747 1981 w -J 38 A Guide to the Saudi Arabian Economy level it will undoubtedly necessitate a drawing upon reserves, a situation which could not continue in the long term. Despite its large share of the oil market it would be impossible for Saudi Arabia to act unilaterally to stabilise oil prices. Large fluctuations in world demand cannot always be counteracted by fluctuations in Saudi Arabian oil supplies; in 1981 all members of OPEC shared in the reduction of output (with the exception of Indonesia); Libya, Nigeria and Kuwait lowering output by 30 per cent below 1980 levels.
D. = million barrels/day. = million barrels. 1974 1975 1976 /977 1978 * refers to Aramco Proved Petroleum Reserves. SouRcEs Various SAMA Reports; Oil and Gas Journal, March 1982; Aramco Annual Reports. d. b. b. l. 2. 3. 4. 6 116747 1981 w -J 38 A Guide to the Saudi Arabian Economy level it will undoubtedly necessitate a drawing upon reserves, a situation which could not continue in the long term. Despite its large share of the oil market it would be impossible for Saudi Arabia to act unilaterally to stabilise oil prices.
This is far from the truth. Prosperity in the country is newly found and came only 16 A Guide to the Saudi Arabian Economy with the oil price rise in the early 1390s. It has until recent years been a largely agricultural economy with a shortage of capital to bring about industrialisation. In this respect until 1393 it was no different to many third-world economies; it had little voluntary saving to finance investment, average per capita income, and hence the standard of living, was low. The major difference now, of course, is that it has no lack of finance to develop, the contribution of oil production and a high oil price has more than compensated for this deficiency.
A Guide to the Saudi Arabian Economy by John R. Presley (auth.)