The Saudi Arabia Page -- December 8, 2022

Earlier:

Saudi Arabia: even before D5S, link here:

More, from The Wall Street Journal:

The Saudi government posted a $27 billion budget surplus Wednesday, December 7, 2022, as this year’s high oil prices accelerate Crown Prince Mohammed bin Salman‘s ambitious plans and boost resource-rich economies across the Persian Gulf.

Buoyant crude prices helped the kingdom’s economy expand at one of the fastest rates globally, with the government spending $47 billion more than planned. In a year when global growth is pegged at 3.2%, the International Monetary Fund predicts growth of 7.6% this year in Saudi Arabia. The kingdom’s output is expected to reach $1 trillion for the first time, cementing its place among the world’s biggest economies.

The boom times have extended to Saudi Arabia’s Gulf neighbors, demonstrating how Russia’s invasion of Ukraine has redrawn the world’s energy maldemic recovery. In Qatar, high natural-gas prices this year have helped cap off a $200 billion investment in infrastructure in the capital Doha, helping the soccer World Cup taking place there this month run smoothly. 

And more:

The Saudi government said revenues increased 28% to $328 billion on higher oil sales this year, with $300 billion predicted for next year. It expects oil prices to remain elevated, or above $80 a barrel, according to Abu Dhabi Commercial Bank. Brent crude, the global oil benchmark, was at roughly $78 a barrel Wednesday, down from a high of nearly $130 earlier this year. That is up from an average of $70.86 a barrel last year and $41.96 a year earlier.

It marks the first period of sustained high oil prices for Prince Mohammed, the 37-year-old who rules Saudi Arabia on behalf of his father. He rose to power during the oil-price crash of 2015 and oversaw a period of austerity measures for average Saudis, even as he pushed ahead with an ambitious program to diversify the country’s economy away from oil.

Break, break.

Prior to seeing this story, I posted this yesterday, when addressing another issue but certainly is worth re-posting here:

Think of it this way. A year ago, there were three actors on the global stage (in the theater of oil):

• the US
• OPEC
• Russia

Today, there are two:

• the US
• Saudi Arabia

A year from now, there will still be only two:

• the US
• Saudi Arabia
  

And if the global economy "explodes" in a good way -- a year from now --

• coming out of a pandemic;
• coming out of a global recession;
• the demand for oil might be more than just noteworthy.

But between "now" (tonight to be specific) and "then" (December 7, 2023) it could be quite the exploding Ferris wheel ride. But I think I read something on twitter today to the effect that, that is when fortunes are made.

Looking at that graphic above and making an additional observation: