Critical factors affecting Saudi Arabia's oil decisions. Report to the Congress of the United States by the Comptroller General

Technical Report · Fri May 12 04:00:00 EDT 1978

DOI:https://doi.org/10.2172/7015034· OSTI ID:7015034

Staats, E. B.

Saudi Arabia's dominant oil production role is expected to increase in the years to come. Various studies on the world energy outlook prepared by recognized authorities conclude that, at some point before the end of this century, world oil supplies will be insufficient to meet demand under an orderly marketing system. They further conclude that a key factor in meeting increased future petroleum demand will be the willingness of Saudi Arabia to significantly expand productive capacity and to supply increasing amounts of oil. It appears that continued increases in Saudi Arabian oil production to meet incremental world demand cannot be taken for granted. Saudi Arabia's capability and willingness to increase its petroleum production in the coming years is dependent on many interrelated technical, operational, political, security, and economic factors. Although there are no insurmountable technical problems to prevent large increases in productive capacity if the necessary funds are spent and technical performance standards maintained, Saudi Government decisions and implementing actions will have a significant impact on the rate of expansion. It is concluded that the U.S. energy policy must emphasize reducing U.S. dependence on insecure oil imports. Therefore, the U.S. energy strategy should include actions to achieve energy conservation, seek new sources of oil and gas, accelerate the development of alternative energy sources, including renewable energy forms, cooperate in the search for energy solutions among industrialized nations, seek cooperation of producer nations while considering the use of leverage at U.S. disposal and avoiding unwarranted confrontations, and help strengthen the weakening dollar by aggressively seeking export opportunities for U.S. businesses.

• Research Organization: General Accounting Office, Washington, DC (USA)
• OSTI ID: 7015034
• Report Number(s): ID-78-32
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000* -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002 -- Energy Planning & Policy-- Petroleum
ASIA
ENERGY CONSERVATION
ENERGY POLICY
ENERGY SOURCES
EXPLORATION
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
NORTH AMERICA
PETROLEUM
RESEARCH PROGRAMS
SAUDI ARABIA
TRADE
USA