#THE MIDDLE EAST: In 2020, the oil industry has gone through ‘the worst time in its history’ while the world was fighting Covid-19 in March 2020, Saudi Arabia flooded the oil market to close the US shale industry. Most of the Banks and all the US shale industry will go bankrupt due to the massive debt and failure to compete with cheaper Saudi oil by the end of 2020. This could have major implications for the global economy, financial markets, and even more for employment. The jobs and livelihoods of some 300 million people are at risk in the current crisis in the global oil business.
Saudi Arabia has 18% of known oil reserves in the world. Saudi Arabia became an oil producer through its oil field in Dhahran for the first time in 1938 and its production cost is $2-5 per barrel which is cheapest in the world.
During the pandemic, Saudi Arabia has increased its stakes in four big European oil firms Royal Dutch Shell, France’s Total, Norway’s Equinor and Italy’s Eni.
In 2012, the oil producing Middle East countries made $1 trillion from selling of oil and gas and received $575 billion in 2019 with oil price at £60-70 per barrel.
Saudi Arabia has begun the construction of a new city named NEOM at the cost of $500 billion near the Red Sea. It recently launched $800 billion development plan to double the capital city Riyadh in the next decade. The new city will have renewables, automation, plantation, aquaponics, biotechnology projects.
Japan is also investing $67 billion in Tourism and entertainment sectors in Saudi Arabia which will create one million jobs in the Kingdom.
UAE and China are aiming $200 billion trade volume by 2030. China will invest $3.4 billion in building a large Warehouse and wholesale retail outlets to export Chinese goods all over the world from Dubai under BRI Networks. UAE Sovereign Fund and Emaar Properties will invest $11 billion in Beijing Daxing International Airport.
UAE has launched the first Arab Spacecraft rockets to Mars and is planning to establish a human colony in 2117 on Mars.
Qatar has gas fields that account for more than 13% of the global resource. As a result, it is the richest state per-capita in the world for its 2 million residents. Qatar has best TV Chanel Al Jazeera Media Network in the world and organising 2022 FIFA World Cup.
#IRAN: has 22% of known reserve of the world’s oil and gas. Recently Iran and China has signed 25 years of ‘Strategic Partnership’ that could mark seismic shift in the global oil & gas market. The new deal is much bigger than $60 billion China Pakistan Economic Corridor.
China will invest $280 billion for developing Iran’s oil, gas and petrochemicals sectors in next five years. China will buy any and all oil, gas and petroleum products at 12% discount.
China will invest $120 billion to build factories in Iran to manufacture their products, upgrade Iran’s transport sector and electrify 900 km railway from Tehran to Mashhad.
(My post on Facebook on 29th July 2020 and in Hindi in August)
