From GraphOlogy we get a snapshot of Saudi Arabia’s oil situation and the pressures of a rapidly growing population.

Note how oil supply is now nearing proven reserves while Saudi population and consumption soars.  This begs the question as to where the Kingdom is going to get more revenue once its domestic population consumes most of its oil.

The Saudi government is investing heavily in nuclear and solar energy hoping to free up barrels of oil for export which are now used to generate electricity.

 

 

Saudi Arabia in One Chart

This chart is not for the faint of heart (100= 1981 value).

An interesting observation is that the rig count for Saudi Arabia has followed closely the value of oil exports up to 2009 which means that a constant fraction of oil income has been invested in oil supply development. Petroleum product consumption has followed population growth up to 2004, however it has grown much faster afterward and this can be explained by a strong economic growth stimulated by high oil prices. Oil Supply is nearly flat since the 90s however oil revenues have increased by 150% since 2004 and Saudi Arabia has enjoyed positive budget surplus since. High inflation (partly due to increasing food prices) and high unemployment around 10% is probably the biggest threat for Saudi Arabia right now.

UPDATE

gulfnews reports that Saudi energy demand is expected to double by 2028.

Energy & Capital writes about Saudia Arabia’s Worst Fears Are Coming True with graphs projecting the kingdom’s population growth and energy demand through 2025.

1 Comment on Saudi Arabia in One Chart

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