Kemp: Saudi Reform Efforts Wax and Wane with Oil Revenues

Reuters

(John Kemp is a Reuters market analyst. The views expressed are his own)

LONDON, Feb 9 (Reuters) - "The GCC governments and peoples should realise that the boom period is over. We must all get used to a certain type of lifestyle that does not rely entirely on the state," Saudi Arabia's ruler warned.

"The upcoming period needs the private sector to assume part of the responsibility which has up until now been carried by the state," he told his fellow leaders from the six Gulf Cooperation Council countries.

The words could have come from Deputy Crown Prince Mohammed bin Salman, who spoke about the need for economic reform in a lengthy interview with the Economist newspaper on Jan. 4, 2016.

In fact they were spoken almost two decades earlier by Crown Prince Abdullah, the kingdom's de facto regent, at the Gulf Cooperation Council summit held in Abu Dhabi on Dec. 8, 1998.

The 19th GCC summit took place amid the last great slump in oil prices, when crude had fallen to just $10 per barrel, worth around $14 today after adjusting for inflation.

Oil prices, never very high in the 1990s, had almost halved over the previous 12 months after OPEC miscalculated demand for its oil and raised production despite the Asian financial crisis.


12345

View Full Article

Copyright 2016 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Logistics Coordinator
Expertise: Budget / Cost Control|Estimating|Supply Chain Management
Location: Tupman, CA
 
Accounts Payable Manager
Expertise: Accounting|Financial Analyst|Payroll
Location: KCMO, MO
 
Project Manager I
Expertise: Corrosion Engineering|Pipe Inspection / NDT|Project Management
Location: San Diego, CA
 
search for more jobs

Brent Crude Oil : $45.89/BBL 3.69%
Light Crude Oil : $44.48/BBL 3.97%
Natural Gas : $2.96/MMBtu 1.00%
Updated in last 24 hours