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The energy revolution in Saudi Arabia has accelerated significantly since 2016, driven by the National Vision 2030. Significant changes to energy subsidies took place, and the renewable energy sector has seen rapid growth. The paper presents an empirical analysis of the Saudi energy transition by emphasizing the drivers of fuel consumption in KSA. It primarily attempts to explore the long-run (LR) connection between oil consumption and several economic variables such as economic growth, crude oil prices, investment, and the labor force in Saudi Arabia (KSA) from 1991 up to 2021. The paper implemented the vector error correction model (VECM) and performed different diagnostic tests to provide more evidence about the validity and robustness of the tests. The empirical findings highlighted how important the labor force, savings, GDP, and crude oil price are in determining oil consumption for KSA. The law of demand is significantly present, which negatively affects oil consumption for KSA as an oil exporting country. The results also supported the existence of a long-term direct correlation between the variables and oil consumption. Furthermore, the short-term estimation highlighted that only saving has a negative impact on oil consumption for a single lagged period. Our findings provide governments and regulators with further incentive to slow the expansion in oil consumption, as a larger labor force is demanding more oil to attain the target, faster economic growth, and increased savings are all contributing factors. Our findings are significant because they can assist policymakers, investors, and regulators in generating more efficient oil substitutes and making them affordable for the economy. [ABSTRACT FROM AUTHOR]

Oil and gas are key energy sources in the Gulf Cooperation Council (GCC) region. The present study examines the asymmetrical environmental effects of these energy sources and also tests the environmental Kuznets curve (EKC) from 1975 to 2019. In the long run, the EKC is corroborated in Kuwait and Saudi Arabia. But the EKC is not validated in the GCC Panel. Increasing oil consumption raises carbon dioxide (CO2) emissions in all investigated GCC countries, and decreasing oil consumption reduces CO2 emissions in Kuwait, Oman, Saudi Arabia, and the United Arab Emirates (UAE). The effect of oil consumption is found asymmetrical in Qatar and symmetrical in the rest of GCC countries. Increasing natural gas consumption (NGC) carries a positive effect in all investigated GCC countries, and decreasing NGC reduces emissions in Oman, Qatar, and the UAE. Moreover, NGC's effects are asymmetrically in all GCC countries except Qatar. In the panel estimates, both increasing and decreasing oil and NGC have positive effects on CO2 emissions. The long-run effect of oil consumption on CO2 emissions is larger than the effect of NGC in most GCC economies and panel results. In the short run, increasing and decreasing oil consumption and NGC have a positive effect on emissions in all investigated economies except Saudi Arabia. In the long run, coefficients of decreasing oil consumption are found significantly greater than coefficients of increasing NGC in Kuwait, Oman, Saudi Arabia, the UAE, and the whole GCC. This finding corroborates that increasing CO2 emissions with increasing NGC is lower than decreasing CO2 emissions with decreasing oil consumption. Hence, we recommend these countries switch from oil consumption to NGC to reduce overall CO2 emissions. [ABSTRACT FROM AUTHOR]

The objective of this article is to examine the sustainability of long‐run economic growth in Saudi Arabia over the period 1970–2016. It also discusses the changes in explanatory variables (such as investment, government consumption expenditure, household consumption expenditure, final consumption expenditure, exports, imports, fuel exports, oil prices, oil production, resource rents, the share of agriculture and mining sectors in total output, terms of trade, exchange rate and foreign direct investment inflows) associated with substantial jumps in the trend growth. The study employs a statistical approach of Bai and Perron (Econometrica, 1998, 66, 47–78; Journal of Applied Econometrics, 2003, 18, 1–22) and subjective approach of Hausmann, Pritchett, and Rodrik (Journal of Economic Growth, 2005, 10, 303–329) to identify the significant up‐breaks and down‐breaks in the trend growth. Further, the study subjectively determines the growth regimes of booms and recessions in the Saudi Arabian economy. The statistical results of the article can be summarised as follows: we found four significant breaks in the growth trend of Saudi Arabia that occurred in the years 1978, 1985, 1992 and 2002. The article argues that the long‐run growth trend of Saudi Arabia is characterised by rapid, moderate, stagnation and collapse growth regimes over the past four decades. In addition, the article found that strong growth regimes are associated with improvements in investment, aggregate consumption expenditure, exchange rate, foreign investment inflows, fuel exports and imports. On the other hand, growth collapses are associated with a decline in these factors, along with an increase in resource rents, oil prices, oil production and adverse terms of trade. These latter results indicate the presence of a resource curse in the economy of Saudi Arabia. [ABSTRACT FROM AUTHOR]

Reports on the impact of increasing demand for petroleum on the world oil market and world economies. Factors that contribute to the rise of oil consumption; Concerns over the finite nature of petroleum resources; Role of the Organization of Petroleum Exporting Countries producers in the petroleum marketing systems of Iraq and Saudi Arabia.

Since real oil price is positively correlated with real consumption and domestic income in Saudi Arabia, a risk premium needs to be considered when assessing the net present value of oil-related public investment projects. For projects gen-erating additional oil exports, this risk premium quantifies the cost of increased dependence on oil revenues. For projects transforming oil into products whose prices are less correlated with the Saudi economy, it quantifies the benefit from reducing the aggregate risk. The value of this risk premium depends on expec-tations about future consumption and oil price. By considering alternative as-sumptions, we show that over a one-year horizon this risk premium could range between 1.3% and 5% of the expected oil-related cash flow, with higher premia for longer planning horizons. We discuss the implications of these calculations for energy-related public projects in Saudi Arabia and, more generally, for public decision-making in resource-rich countries. [ABSTRACT FROM AUTHOR]

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Oil and gas are key energy sources in the Gulf Cooperation Council (GCC) region. The present study examines the asymmetrical environmental effects of these energy sources and also tests the environmental Kuznets curve (EKC) from 1975 to 2019. In the long run, the EKC is corroborated in Kuwait and Saudi Arabia. But the EKC is not validated in the GCC Panel. Increasing oil consumption raises carbon dioxide (CO 2 ) emissions in all investigated GCC countries, and decreasing oil consumption reduces CO 2 emissions in Kuwait, Oman, Saudi Arabia, and the United Arab Emirates (UAE). The effect of oil consumption is found asymmetrical in Qatar and symmetrical in the rest of GCC countries. Increasing natural gas consumption (NGC) carries a positive effect in all investigated GCC countries, and decreasing NGC reduces emissions in Oman, Qatar, and the UAE. Moreover, NGC's effects are asymmetrically in all GCC countries except Qatar. In the panel estimates, both increasing and decreasing oil and NGC have positive effects on CO 2 emissions. The long-run effect of oil consumption on CO 2 emissions is larger than the effect of NGC in most GCC economies and panel results. In the short run, increasing and decreasing oil consumption and NGC have a positive effect on emissions in all investigated economies except Saudi Arabia. In the long run, coefficients of decreasing oil consumption are found significantly greater than coefficients of increasing NGC in Kuwait, Oman, Saudi Arabia, the UAE, and the whole GCC. This finding corroborates that increasing CO 2 emissions with increasing NGC is lower than decreasing CO 2 emissions with decreasing oil consumption. Hence, we recommend these countries switch from oil consumption to NGC to reduce overall CO 2 emissions., (© 2022. The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.)

The article investigates the relationship between the consumption of refined oil products, domestic prices and per-capita income in Saudi Arabia from 1980 to 2010 using the autoregressive distributed lag (ARDL) approach or the bounds testing procedure. The analysis indicates that demand for diesel, gasoline and kerosene will likely to increase for a given increase in the gross domestic product. The need for policy makers to raise the price of refined products is also mentioned.

The Arctic zone is full of controversies, unknowns, contrasts, and challenges. The following example is enlightening. Saudi Arabia is a country that has been considered to have almost unlimited possibilities because of its enormous oil earnings. The country has US$60 thousand million purchasing power parity oil income each year for its mere 22 million inhabitants. Astonishingly, the Arctic zone's income from oil, gas, and minerals is at least as large as that of Saudi Arabia, modestly estimated, but the Arctic has less than 4 million people. Most money, however, flows away from the tundra, yet social and environmental problems remain there. A part of the side effect of consuming these resources—largely fossil fuels—returns to the Arctic in the form of greenhouse warming and all its consequences. The Arctic zone now warms at approximately double the rate of the world average. [ABSTRACT FROM AUTHOR]

It would not be an exaggeration to assert that a reliable economic or political model of OPEC decision-making has yet to be formulated. So far, predictions and forecasts about OPEC pricing have proven to be wrong. From the start, OPEC was labeled an "oil cartel," although strictly speaking this was never the case. OPEC has never supplied more than a fraction of world oil consumption, and of course an even smaller proportion of total energy consumption. Even if one restricts discussion to the world export market for petroleum, a small but increasing share of exports is supplied by non-OPEC producers. OPEC did not collapse and only the most myopic continue to proclaim its imminent demise. Yet there is still no adequate explanation for its survival. Some have asserted that large multinationals are coordinating oil supplies for the OPEC producers, but little evidence to that effect has been presented. And procedures like formal supply rationing rules or an enforcement apparatus, which would ordinarily be a sine qua non for price-fixing, do not seem to exist in OPEC.

Perhaps no other area witnessed faster economic growth in recent years than the oil producing members of the Council of Co-operation of the Gulf States (to be referred to hereafter as the GCC countries). The Council includes six members: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates. With the exception of Bahrain, these members are rich oil exporters whose oil revenues reached unprecedentedly high levels since the sharp rise in oil prices in 1973/4. This has, no doubt, contributed towards the achievement of ambitious development targets. However, oil exports since 1974 have been subject to a considerable degree of fluctuation and were significantly depressed in 1983, due to policies followed by oil importers (e.g. the reduction in oil consumption and the stockpiling of oil imports) and due to the increase in oil supply. These fluctuations in the export proceeds were accompanied by persistently high growth in the imports of the oil producers which affected the stability of their external surplus and hence their balance of current account.
This paper develops single and simultaneous equation models to investigate the behaviour of the external surplus of the GCC countries. Section II throws some light on the structure and performance of the GCC countries' economies during the 1970s and early 1980s. In Section II some single equation models are developed and tested to examine the determinants of the external surplus of the oil producing members of the GCC. A simultaneous equation model is developed and tested in Section IV to investigate the interaction between development in the region and the rest of the world and its effect on the external surplus of each country. Finally, Section V summarizes the main findings of the study. [ABSTRACT FROM AUTHOR]

The article assesses the impact of the increase of oil prices in Saudi Arabia. The author argues that Oil Minister Sheik Ahmed Zaki Yamani misinterpreted the effect of price elasticity of demand, which resulted to small reduction of demand after price increase. Continuous increases resulted to the structural change of oil use in major industrialized countries during 1973-1978.