• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 10 minutes Phase One trade deal, for China it is all about technology war
  • 12 minutes Trump has changed into a World Leader
  • 9 hours Shale Oil Fiasco
  • 2 hours Might be Time for NG Producers to Find New Career
  • 1 hour Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 10 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 6 hours We're freezing! Isn't it great? The carbon tax must be working!
  • 1 day Prototype Haliade X 12MW turbine starts operating in Rotterdam
  • 1 day Wind Turbine Blades Not Recyclable
  • 1 day China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 1 day Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 1 hour Indonesia Stands Up to China. Will Japan Help?
  • 1 day Denmark gets 47% of its electricity from wind in 2019
  • 9 hours US Shale: Technology
Alt Text

Massive Oil Product Build Sends Prices Lower

A surprise draw in crude…

Alt Text

Bringing Transparency To China's Opaque Oil Market

Technological developments are improving market…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Saudi Arabia Eyes 80% Jump In Oil Revenues By 2023

Saudi Arabia sees oil revenues soaring by 80 percent over the next six years, according to unnamed sources that spoke to Bloomberg. The information is not public yet but plans are for the Kingdom to increase its output to a level that, combined with an assumption of higher oil prices, will allow Riyadh to book its first budget surplus since 2013.

The plan, devised to get Saudi Arabia out of the budget deficit that the 2014 crisis plunged it into, envisages an increase of oil sales revenues to US$214 billion (801.4 billion riyals) in 2023, from US$117.32 billion (440 billion riyal) in 2017, provided crude oil rises to US$75 a barrel.

This plan sees non-oil revenues rising by a lot less: 32 percent, to US$90 billion (337 billion riyals). The news comes amid much-publicized plans by Riyadh to wean itself off crude and stimulate greater economic growth through diversification into non-oil industries, such as tourism.

Last week, King Salman announced Saudi Arabia’s budget for 2018, which would be the highest on record, with spending set at US$261 billion. Riyadh also eyes cutting the share of oil revenues in the total to less than 50 percent. That would be a huge reduction given that oil accounted for more than 90 percent of revenues just three years ago. To date, oil revenues are about two-thirds of the total. Related: Goldman: Oil Markets To Balance Sooner Than Expected

In order to be able to take full advantage of higher prices—if they materialize—Saudi Arabia plans to up crude oil production to 11.3 million bpd six years from now. This year, the daily average will stand at 10 million barrels, with the country bound by its participation in the OPEC-wide production cut and regularly going above and beyond its pledge to compensate for laggards such as Iraq.

This plan suggests that despite some suggestions to the contrary, OPEC’s number-one producer has no intention of making the production cut permanent, which greatly increases the significance of the exit strategy that OPEC officials are already working on. The exit would have to be very gradual indeed, and will have to be combined with lower production elsewhere if prices of US$75 a barrel are to become a reality as per the Saudi six-year plan.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage




Leave a comment
  • Clyde Boyd on December 26 2017 said:
    80% huh? Hmmmmm. Count me skeptical. Sure, the oil traders will do what they always try to do, namely manipulate the market price of oil. But getting it 80% higher than today? I dont think so. If anything, the more traders jack up the price the more fracking and other new technologies will be invented thus increasing supply. Saudi Arabia is in no position to take on america. They are liable to find themselves without a kingdom and wothout a country if they dont watch it.
  • Disgruntled on December 27 2017 said:
    Clyde, 80% increase from $60/b is only $108/b in six years. I'll be surprised if that's all it is. In six years the global demand should be somewhere around 7 to 9 million bopd greater from where it is now. That supply won't materialize out of thin air. It will have to be incentivized to reach it. I think it'll be higher than $108/b in six years.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play