The Saudi Aramco CEO Amin Nasser stated that the Oil price will increase as the global economy will soar up 100% by 2050. He refused the theories that estimate peak for Oil price within years as the Oil will be the main source of energy for the world.
Some financial analyst and Oil companies believe that the Oil demand is at its maximum level and it will fall down as the demand for battery-powered cars will make the Oil price peaks in 2030.
Saudi Arabia’s oil-based economy has seen so many fluctuations since the first drilling projects, but the kingdom had a great growth by the oil price explosion in 1970s. The oil windfall changed the face of the kingdom and people, especially within the next decades when they got more accustomed to abundance.
The 2014 oil slip had its impact on welfare in Saudi Arabia since they used their currency reserves and face a budget deficit reached 16% of economic output. The oil price collapse carried big challenges to GCC countries especially Saudi Arabia as engaged directly to regional conflicts.
The kingdom has been facing the regional changes politically and economically since 2011 when the “Arabian Spring” began; the army was engaged in Yemen civil war.
It seems that the biggest petroleum countries are seeking to double their gains in oil markets by adapting a reduction agreement once again.