Saudi Arabia is implementing energy projects worth US$37 billion during the current fiscal year as it attempts to meet the increasing demand for refined oil products
Saudi tops the list of highest spending countries in energy projects in the region, driven by increase of oil prices more than $100 per barrel. The kingdom has been developing projects related to oil production expansion and downstream industries focused on oil refineries.
During the past four years, the number of energy projects in many oil producing countries decreased significantly by 40 per cent due to the uncertainty of global economic growth and oil prices, said analysts at Oil Investments.
According a report by industry service company Global Energy Group, Saudi Arabia's strong financial solvency has enabled it to go ahead with planning huge oil projects and invest oil revenues into development and industrial diversification.
A report by the Economist Intelligence Unit (EIU) stated that despite Saudi Arabia's success with oil, the kingdom would focus on the expansion of natural gas projects as the demand for natural gas is estimated to grow more than that of oil, at the rate of 8.6 per cent between 2012 and 2020.
Saudi Arabia is expected to retain its position as the top global exporter of oil through 2020. Its current production capacity is more than 12 million barrels per day.
