An analysis on Saudi Arabia's crude oil production strategy
In accordance with OPEC’s date, Saudi Arabia holds 18% of the proven reserves and is the largest crude oil exporter. In addition, the oil and gas sector contribute the 50% of the nation’s GDP and the 85% of exports revenues. The oil price volatility affects in great scale its economy, and as a consequence, the kingdom has a strong interest in the price levels. For Saudi Arabia, not only has been attributed the role of the price regulator but also that of the discipline enforcer among the OPEC members. The whole debate has come up again after the 170th OPEC meeting in Algeria on 28th of September 2016. It was there where the rebalancing of the oil market was agreed, and they decided for a production cap between 32,5 and 33 Mb/d.2 OPEC members also decided to seek cooperation with other non-members producers. In this thesis, we examine the drivers and Saudi Arabia’s behaviour during the last 2,5 years.