RIYADH: Saudi Arabia has long been the dominant force in oil. Now the kingdom must refresh its strategy to reflect a weaker hand and in many ways, a different game.
The changing nature of the energy industry the oil production boom in American shale fields, the persistence of lower crude prices, and the rise of natural gas has transformed the geopolitical equation. While Saudi Arabia is a major energy producer, it must compensate for its lost revenue. And the US, China and Russia are all circling in hopes of gaining a financial advantage.
And Washington is willing to overlook those flirtations in the hope that Saudi Arabia will continue to be a strategic bulwark against Iran. The desires of all three superpowers fit neatly into Saudi Arabia’s strategy to find new investment partners as part of a broader push to diversify its oil-dependent economy, trim large budget deficits and secure the future of both the kingdom’s welfare state and its monarchy.
