Saudi Arabia: everyday with more problms
The country’s four-decade run as global oil king is slipping through its fingers, and there’s not really much it can do to stop the slide. Sure, Saudi Arabia is still the world’s largest oil exporter and the second largest producer, but its ability to sway global markets is much diminished.
according to rapporteur report from forbes, link ,Many factors have contributed to Saudi Arabia’s loss of power in global oil markets. Here are a few: Its decision in November 2014 to forgo its historic role of swing producer and actually ramp up production as global oil supplies were becoming saturated is one. Another is the U.S. shale oil revolution that started the whole oil supply glut in the first place. However, the Saudis still had the chance to be masters of their own fate, and they blew it.
In a fever-pitched attempt to protect market share, particularly in Asia and Europe, they kept pumping and pumping, so much that they reached new output levels in July. The Saudis had also hoped to shut out as much U.S. shale oil production as possible, but that also backfired.
U.S. production did indeed drop, but it’s coming back. According to a Goldman Sachs report in September, U.S. shale oil production could increase as much as 700,00 barrels per day (bpd) by the end of next year - effectively wiping out the previous two-plus years of losses. Others, however, see U.S. shale oil coming back at a slower pace.