The Middle East is one of the few regions to have committed to capital-intensive expansion plans in recent years, with Saudi Arabia and the UAE planning to increase crude oil production capacity by 1mn b/d by 2027 and 2030 respectively.
Saudi Arabia launched its counter-cyclical expansion drive in March 2020 amid a historic price collapse (MEES, 13 March 2020), and after warning for years that low industry investment was paving the way for a supply shock, Riyadh’s stance is being vindicated. The kingdom is cashing in on the recent oil price surge after the Ukraine conflict added a hefty risk premium to an already tight market (MEES, 27 May), and as new capacity comes online from 2025 onwards it can look forward to more bumper revenues. (CONTINUED - 729 WORDS)
