• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 9 minutes Australia sues Neoen for lack of power from its Tesla battery
  • 13 minutes NordStream2
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 17 hours U.S. Presidential Elections Status - Electoral Votes
  • 10 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 3 hours Evergrande is going Belly Up.
  • 3 days Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 9 hours Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 2 days Oil Price: does the security vacuum in the Middle East spook investors?
  • 3 days Ozone layer destruction driving global warming
Hydrogen Fueled Cars Are Making A Comeback

Hydrogen Fueled Cars Are Making A Comeback

The mass adoption of electric…

Feeling The Oil Crunch: Saudi Arabia Cancels $266 Billion In Projects

Saudi Arabia’s governing economic body called the Council of Economic and Development Affairs (CEDA) has cancelled $266.7 billion in projects, the Saudi Press Agency said, and announced it would be settling much-delayed private-sector payments by year end.

The projects that have been canceled are the ones that are not expected to accelerate the kingdom’s growth or improve the living standards for its people.

The cancellations were first considered in September, but at the time, it was noted that only $20 billion in projects would be considered to put on the chopping block.

The size of the delayed payments—mainly due to severe hits to the kingdom’s oil revenue—remains undisclosed, but it includes delayed payments to construction firms, medical establishments, and foreign consultants. One analyst, according to Reuters, estimated that the amount still owing just to construction firms was US$21 billion.

The 2016 budget deficit will not be known until late December, when Saudi Arabia announces its 2017 budget plan.

Payment delays in the kingdom are nothing new. Last year in October, Saudi Arabia also experienced a delay in payments to contractors. Companies working on infrastructure projects had, in late 2015, met with payment delays that exceeded six months as the government tried to hang onto its cash as crude prices started to bite.

The measures taken by Saudi Arabia in 2015—tapping into foreign reserves, cutting spending, delaying projects, and selling bonds—seem to be reoccurring after another year of painful prices for the kingdom. And while Saudi Arabia has so far managed to tread financial water throughout the 2015 and 2016 oil price slump, many analysts feel that 2017 brings dimmer prospects to the state’s finances, despite all the efforts by OPEC members to stabilize the oil markets.

By Julianne Geiger for Oilprice.com

More Top Read From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News