From NY times
KSA through its crown prince Mohamad Bin Salman will launch its Vision of 2030 in an effort to lessen KSA dependence on oil revenues. Times have been challenging for the kingdom when oil revenues are hovering at the $30 price, down from its high of $100.00 in 2014. Flush with oil revenues at the height of the price, KSA is now suffering and has borrowed money to shore up its liquidity.
One plan involves selling 5% of the shares of Saudi Aramco, one of the largest State owned Petrol company (the company is worth trillion) The idea is to set up fund to fuel the investments. One of the plans is make KSA a financial capital. KSA produces roughly 10% or about 10 million barrels of oil a day. and owns one of the biggest oil reserve in the world
Many doubt if the plan would work because of absence of entrepreneurial talents in KSA. Many citizens would prefer to be given state welfare, prefer not to work, and let expatriates do the job. All because of dependence on oil.
I have always commented that we are better in the Phil, because we source of fresh water, aquatic resource, forest and food supply. KSA has nothing. If it loses its oil (which can be in this lifetime) or difficulties with the market, then pity KSA
What do you suggest for KSA?
More bankruptcies for the oil industry
Many analyst foresee many bankruptcies happening in the oil industry as well for the banks and suppliers. There could be hundreds of them and they are publicly listed with oil prices hovering at $30.00 per barrel. The fire in Canada seemed to augur well for oil industry because the prices edged a bit. Now the danger of fire is over.
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