Oil poolAccording to the Saudi bank Samba Financial Group, in 2005 Saudi Arabia will receive from sale of oil about $163 mlrd, and proficiency of the Saudi budget will make $56 billion Enormous profits which Saudi Arabia receives thanks to the high prices for oil, force to reflect on how the country will dispose of these riches. The part of means will direct the Saudi government on increase in a share of national shots in the companies, including in Saudi Aramco.
the Oil branch makes the locomotive of royal economy about 75 % of budgetary receipts of Saudi Arabia, 45 % of gross national product and 90 % of export. Almost all oil stocks of Saudi Arabia are at the disposal state Saudi Aramco - the world`s largest oil company. The reconnoitered stocks of oil Saudi Aramco at present make nearby 260 mlrd barrels. The history of creation Saudi Aramco leaves the roots per 1933 - then the government of Saudi Arabia, pilgrims to Mecca were the main which source of incomes at that time, has given oil concession American California Arabian Standard Oil Company (Casoc), connected with Standard Oil of California (Socal, nowadays known as Chevron). In 1936 Texas Company (later received name Texaco) has got at Casoc 50 % of concession on investigation and oil recovery. In 1938 in Dahrane where now there is a staff - apartment Saudi Aramco, the first commercial oil field which after a year have started to export on tankers was revealed.
already then it became clear that oil draws attention of the most high-ranking Saudi heads - at ceremony of sending of the first tanker with the Saudi oil from port of Races - Tanura was present king Abd al - Aziz. In 1944 Casoc has replaced the name on Arabian American Oil Company (in abbreviated form Aramco). Since 1973 the Saudi government has started to redeem at owners Aramco of its action, having begun with 25 % of an authorised capital stock, in 1974 the government has redeemed 35 more %, and by 1980 has finished the share holding in Aramco to 100 %. Since then the Saudi government completely supervises oil recovery in the country. In 1988 company Aramco has received the present name - Saudi Aramco.
Now Saudi Aramco extracts about 9,5 million bar./ days though the company declares that can extract prices which have Grown in the last two days for oil to 11 million have brought Saudi Arabia superprofits - according to Samba Financial Group, this year receipts from oil will grow on 54 %. The volume of export of the Saudi oil in 2005 will make about $163 mlrd (in 2004 - $106 mlrd).
the High prices for oil have considerably corrected a situation in the Saudi economy - if in 2001 budgetary deficiency of Saudi Arabia made $6,7 mlrd this year at the put price for oil in $25 for barrel proficiency of the budget of kingdom, by estimations Samba Financial, will make about $56 billion Growth of gross national product of Saudi Arabia in 2005 will make 6,8 % that is a record for last 20 years. Next year Samba Financial predicts growth of Saudi gross national product at level of 5,1 %. The present situation causes a question in experts: how Saudi Arabia will dispose of huge means which it receives from oil export?
where to spend
last two years the Saudi government actively reduces the public debt which has collected for the previous decade. If in 2000 the debt of Saudi Arabia made 119 % of gross national product in 2004 it has decreased already to 75 % of gross national product, and this year, according to the head of the Central Bank of Saudi Arabia Hamada the expert - Sajjari, incomes of oil sale will allow the government to reduce a public debt to 49 % of gross national product.
Besides, in Saudi Arabia at full speed there is a performance of the scale program in cost of $50 mlrd on increase in oil recovery at 1,5 million bar./ days - to 12 million by 2009. The basic components of this program - projects on oil recovery increase at deposits in Harade, Hursanie, Shejbe, Nuajime and Hurajse. However all these projects demand considerable financial injections. Under plans of the Saudi authorities by 2006 productivity of a deposit of Harad where 600 thousand bar is at the moment extracted./ days, it will be raised for 300 thousand On it it will be spent about $1 billion by Contractor of this project is Italian Techint. On development of a deposit of Hursanija with extraction increase on 500 thousand bar./ days by 2007 it is necessary $3 billion On increase in extraction at 300 thousand bar./ days on deposits in Shejbe and Nuajime by 2008$3 more mlrd, and works on increase of productivity of a deposit of Hurajs on $1,2 million bar are necessary./ days which is planned to finish by 2009, will demand $5 billion
Many analysts consider that investments into branch development remind a vicious circle which can interrupt with an exhaustion of stocks of oil or conjuncture change in the market as the Saudi economy extremely depends on the oil prices. For today of the USA import from all countries of League of the Arabian states and Iran industrial goods and agricultural production for the sum of all hardly more than $5 mlrd that makes half of import of the USA of one Hong Kong. Therefore the high prices for oil, at first sight helping Saudi Arabia to correct the economic situation, actually only remove inevitable - necessity to diversify the economy and to get rid of petrodependence. According to magazine Economist, the question on where except oil sphere oil-producing countries will put the superincomes, remains to one of main points of present time.
experts believe that now Saudi Arabia has a good chance to use a situation to make a number of radical long-term transformations. In days of oil boom (1973 - 1975 and 1980) the majority of such countries - among them and Saudi Arabia - was spent by considerable means for import of the goods and services, including expensive building projects. By magazine Economist estimations, in the first oil boom 1973 - 1975 of member country of the OPEC have spent for import of 60 % of the incomes of oil export. In 1980 this proportion has grown to 75 %. However last three years, by IMF estimations, members of the OPEC have spent for import only 40 % of oil superprofits. Oil-producing countries have considered lessons of previous years when huge means have been spent for achievement of short-term objectives.
the Saudi government actively realises the program “ saudizatsii “ - increases in a share of national shots in the companies, including in Saudi Aramco in which, by the way, work about 9 thousand foreigners. Unemployment in Saudi Arabia makes, by different estimations, from 9 % to 13 % while in the country works about 5,5 million foreigners. In January the Saudi minister of work of Gazi al - Gosajbi has declared allocation more than $533 million on training and improvement of professional skill of the Saudi youth. In July of the power of Saudi Arabia declared the beginning of the project in cost about $10 million in which course the general database of the unemployed and a database of vacancies in all Saudi companies will be created. In November the Ministry of Labour has forbidden the companies to employ foreigners is more senior 60 years.
it is remarkable that saudovtsy are adjusted rather patriotically and want to work in the country - according to poll spent rekrutingovym by site GulfTalent. com, 94 % of graduates of University of oil and mineral resources of a name of king Fahda want to work in Saudi Arabia. 54 % of graduates would like to work some years abroad that then, having got hand in, to return home. 64 % interrogated would like to work in Saudi Aramco, 18 % - in the state company Saudi Electricity and 15 % - in telecommunication company Saudi Telecom.
According to a number of experts, improvement of a social status of private soldiers saudovtsev should become the main task of the Saudi authorities. And the authorities understand it - during the current year the Saudi government has spent $5,3 mlrd on 15 - percentage increase in the salary all state employee. It became the first general increase in the salary for last 20 years. According to the Saudi economist Musy the expert - Sajjada, “ growth of religious extremism is direct result of the short-sightedness shown by the government in days of the previous oil boom. When the prices for oil have fallen, the government could not give to people of grants expected by them.
EVGENIE the TAIL
Capital - Ayr - Rijad. Territory - 2,15 million in sq. km. Population - 22,67 million persons. Gross national products in 2004 - $310,2 billion
oil Stocks in Saudi Arabia are estimated in 261,9 mlrd barrels (22,1 % of all world oil stocks, the first place). Saudi Arabia takes the fourth place in the world on the proved stocks of natural gas which are estimated in 6,6 trln by cubic m. More than half of stocks of oil contains only in eight deposits, largest of which - Gavar and Safanija. The basic gas fields are in area of a petrocraft of Gavar and on deposits of Safanija and Zuluf. In total in the country 89 oil deposits operate. The majority of chinks - samotechnye that allows to refuse use of pumps for oil extraction on a surface. Thanks to it and the extraction cost price - one of the lowest in the world: $1 - 3 for barrel.
in 2004 oil recovery in kingdom has made more than 8 mlrd barrels, the gain from oil export - $116 billion 34 % of the exported goods goes to the countries of Asia, 24 % - to the North America, 21 % - to the Western Europe.
the main state extracting enterprises - Saudi Arabian Oil Co. (Saudi Aramco) and Saudi Basic Industries Corp. (SABIC). The basic foreign companies working in Saudi Arabia, - AOC (Arabian Oil Company; Japan), Shell, Texaco, Total. Partially working out of gas deposits is conducted with participation of the foreign companies. In particular, in November, 2003 of company Royal Dutch/ Shell and Total became the first western companies admitted to working out of gas deposits. In January, 2004 the similar contract has received the Russian LUKOIL.
the oil and gas sector makes 70 - 80 % of a profitable part of the budget, gives about 40 % of a total national product and 90 % of incomes of export.