February 1, 2013
Saudi Arabia's New Oil Balancing Act
Andres Cala, Energy Tribune
Saudi Arabia is facing a tough oil balancing act in 2013 and the remainder of the decade to preserve its geopolitical and economic clout, as it adapts to increasing global supply -mainly from US and Iraq- and increasing government spending and energy demand.
Saudi global clout and internal stability lies in its ability to regulate global oil prices through its unrivalled production spare capacity. This leverage is illustrated by Saudi Arabia’s current ability to offset stagnant OPEC supply (with the exception of Iraq) and falling non-OPEC supply (with the exception of North America), on top of an oil embargo on Iran, all while keeping oil prices at a comfortable level for both consumers...
TAGGED: oil, Saudi Arabia