What would increasing Saudi Arabian oil production mean for the climate?
Why are SaudiArabia and the United Arab Emirates being asked to pump more oil?
Western powers are looking for ways to keep the pressure on Russia during its invasion of Ukraine. Some countries have committed to phasing out Russian oil and gas, while others are still investigating ways of doing this. Saudi Arabia is one of a number of countries, along with Venezuela and Iran, that might be able to plug the gap in oil production.
How important is Saudi Arabia as an oil producer?
Saudi Arabia has an estimated 17% of the world’s proven petroleum reserves. Saudi Aramco, the state-owned company which handles Saudi oil, is the world’s largest oil exporter, and one of the world’s most profitable companies. In 2019, in an unexpected move, a tiny part of the company went public. It raised less than Crown Prince Mohammed bin Salman, the country’s ruler, had reportedly hoped for, but still brought in about $25bn. The UAE, meanwhile, holds the estimated seventh largest reserves in the world.
Are SaudiArabia and the UAE going to open the taps to oblige the west?
Boris Johnson went toRiyadhto ask if the Saudis would consider increasing their output, but so far the answer appears to be no. He also approached the UAE. However, the relationship between Saudi Arabia and western countries has been fairly frosty in the aftermath of the killing of Saudi journalist Jamal Khashoggi in 2018. Relations with the UAE are not at their best either.
Meanwhile Riyadh has been coordinating oil supply levels with Moscow over the last few years, although that has also not been smooth. Saudi Arabia was reported on Thursday to be considering accepting the Chinese yuan in exchange for oil, rather than the traditional dollar.
Does Saudi Arabia have any plans to
Read more on theguardian.com
