• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 4 hours Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 2 hours Shale profitability
  • 7 hours When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 9 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 6 mins Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 12 mins Europe: The Cracks Are Beginning To Show
  • 14 hours Let's shut down dissent like The Conversation in Australia
  • 17 hours New designs will reduce transport fuels consumption
  • 8 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 14 hours A little something for all you Offshore swabbies
  • 2 hours LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 18 hours Democrats and Gun Views
  • 22 mins US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 5 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
Alt Text

The Restoration Scenarios For Saudi Oil Supply

After the largest supply disruption…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Saudis To Slash $20B In Projects To Close Budget Gap

In a bid to reduce the budget deficit that has been growing as crude prices have been falling, Saudi Arabia may cancel projects worth over US$20 billion, Bloomberg reported on Tuesday, citing people familiar with the plans.

The kingdom, OPEC’s biggest oil producer, is currently reviewing projects valued at a total spending of US$69 billion (260 billion riyals) and may drop one-third of them. Killing off a third of the projects would benefit the budget for a few years, the sources said.

Saudi Arabia is also planning to reshuffle ministries as it seeks to streamline spending, with the oil revenues for the economy dropping with the low crude prices.

At the end of last year, Saudi Arabia resorted to levying new taxes and reducing government subsidies for water, electrical power and even gasoline, trying to shore up the widening budget gap that had opened with the oil price crash. Saudi Arabia’s deficit was then around 16 percent of its gross domestic product.

Last month, signs emerged that the Saudi economy was stabilizing after the government implemented reforms in order to address a fiscal and economic crisis. The IMF forecasts the Saudi budget deficit would narrow from 13 percent of GDP in 2016 to 9.6 percent in 2017, a dramatic improvement from the 16-percent deficit from 2015.

Saudi Arabia has also launched an economic plan to diversify the country away from crude oil as the sole source of revenue. That involves taking a small slice of state-owned Saudi Aramco public, and using the proceeds to invest in non-oil sectors of the economy.

Still, Saudi Arabia is not giving up on its precious revenue source, and may have well set a fresh output record in August, according to last week’s Reuters survey.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • William Petro on September 06 2016 said:
    Sooner or later the Saudi will have to stop seeing a Iranian behind every tree, and stop backing the war in Syria, and Yemen!
    Or it will bleed them dry( see US in Vietnam)

Leave a comment




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