Saudi Arabia's Gigantic Oil Problem, Explained in 2 Minutes
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- Опубликовано: 29 июн 2016
- Saudi Arabia's vast oil wealth has transformed the lives of its citizens - but it needs to turn off the rampant spending if it wants to balance the books. This Bloomberg QuickTake video explores how the kingdom plans to navigate its post-oil future.
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I taught electrical control systems engineering technology in two colleges in Saudi Arabia to Saudis, young men only. The Saudi government has passed a law that used to require that any company in KSA (Kingdom of Saudi Arabia) hires at least 30% of their employees who are Saudis. Last year, that percentage of Saudi employees required was increased to 40%. The KSA has a population of 25 million Saudis and 6.1 million expatriates.
Up until 1961, slavery was allowed in KSA and Saudis don't actually work. They have slaves (now they have expats) who do the work. This means that the labour of 6.1 million expats contributes ALL the labour for the entire country. The companies who are required to hire Saudis either pay them to stay home because they are unskilled, or if the Saudi 'worker' is required to come into work, they are given an 'assistant' who is qualified to do their job and the Saudi sits in an elaborate office and takes credit for his expat's (slave) work.
One of my own students remarked to me during my first month there that, "We will never have to do any of this stuff" when I was trying to get them to learn and do assignments. I couldn't believe the attitude he had but since, I have found out that they all aspire to be 'managers' and that they will have their own expat to do their job. I was expected to pass them even though the students rarely attended 50% of my classes and turned in the work of others as if it was their own.
The biggest challenge for the Saudis, in my opinion, is that they believe that they are 'special' and chosen by God to not only have the Prophet Mohammad given to them, but also were given the bounty of all the oil riches.
Furthering this entitlement attitude is the way that they treat their women; in Saudi culture, women are to be treated like princesses. If you can accept that concept, by extension Saudi males must then have to be a prince to marry one of these princesses and a prince doesn't have to work, but is designed to rule over others. The Saudi mindset is to be the boss over the expat (slaves) and be rich as a result of their inherent Saudi heritage.
For the Saudi Kingdom to succeed in the world, they need to relinquish this maladaptive attitude of royal entitlements and need to see work as honourable. The Saudis also need to realize that they were put on earth like the rest of us to serve their fellow human being by their labours and efforts they make to produce goods and services we actually need. They don't even extract their own oil.
Really interesting view point. I worked there for 3 months back in 2003.
I have been fortunate to have been to many countries in my life. Saudi, is the strangest place I have ever been.
I enjoyed my time there but I find it such an un-natural society.
I know exactly what you mean regarding their attitude towards work and slaves/employees.
Fascinating to read that slavery was legal up until the 60's, that answers a lot.
im Saudi, the system is kind of in favor of the lazy/unwilling to study, why work your ass off in a college when you get paid to be there, fail more = more $$$, for the government they're losing way more but just like the prisoners dilemma you will probably be selfish, my situation is almost the same, why focus on studying when i can half ass my school, and focus more on my business and investments, and when i graduate i can sit at home and get paid to look for a job, plus my compounded investments i had in the uni, easily 50k a year sitting on my ass jerking my dick to a graph of an apple stock , until i get a decent job atleast.
Islam does not allow a non muslim to be over a muslim. You are right about the attitude that they think they are somehow special. Islam teaches this.
I knew several Saudis in university. They'd receive huge government checks every month. And they all had a smugness about them, made me very uneasy. I've known non-Gulf Arabs (Palestinian, Lebanese, Syrian) and they were always humble and chill, but I could never connect with the Saudis.
OK, you hire 'em. Will they, or CAN they, do any useful work? Or is this kind'a like the Mob Tax on NY construction sites - "X" number of No Show Jobs per million bucks?
Hmmm. 2022 and price is 110$ go figure and I don't see Tesla's everywhere. 7$ a gallon in Cali you speak with such wisdom young lady
😂
For the love of god, wtf is with the drums banging in this video???
Can't even hear the narrator anymore.
Yeah, very bad combination of excessively loud background "music" and a female narrator whose voice is right in the same range as the bongos. Needs less and quieter music that does not encroach on the higher frequencies.
takeover08 I wanted to like the comment, but I like the Number 69! so dropping in a Comment! Count it as a like 👍
And it was funny how the bongos played and paused exactly with her speech and pauses.
Tried watching it twice and still don't know what problem Saudi Arabia has.
Try with speed x0.75. Only way to understand the video
They only have themselves to blame, they should have taken and reformed earlier, other countries are now less oil dependent on the middle east and are taking steps in using alternative energy.
But who are "they?" The royal family isn't going to suffer. It's only the 99% that won't benefit, so what's the problem?
Bo Zo actually, 99.999999999%
They just bought a whole lot more weapons from TRUMP. They can supply some terrorists for the US and stir up more conflict.
Wesley Pollard, In contrary, Islam & Arab most hated Country Israel has no Oil..and yet one of the most technological most advanced nation in the World...Warren Buffet once said.." If you come looking for Oil you go to the Arabs in the middle East..But if you come looking for BRAINS...you go to ISRAEL...". Lol
+awsome miku hatsune Israel receives billions in aid though. They are best at irrigation.
Saudi Arabia can become the world's biggest producer of glass once the oil industry is no longer profitable.
the are already in a glass bubble ...about to go pooof
Something like glass will never give the same level of demanding power to the supplier. They should have put more eggs in other baskets when they had the chance. It's too late now!
Ahmad Wazir lol tons of gold 😂😂😂 who told you that?
BlackfireVatsal Google Cradle of Gold
I would say that the middle east and China are our biggest enemies. North Korea is a joke! Lets nuke Saudi and blame it on the North Koreans!
I feel so sorry for them. Poor things might have to work for a living.
Look as a Saudi citizen, we of course have a solution, Tesla got invented right? Electric cars are being invented right? So there is nothing to worry about in Saudi Arabia! The crown prince always has prepared something.
The oil boom has been a great blessing to the land of Saudi Arabia .But also my people need to acknowledge the innovation plan of the world , Automobiles and Petrol - moved devices are reducing in the number day in , day out ..It's advisable that big investors should try putting hands in also other lucrative platforms /sources of wealth such as Digital marketing i.e Crytocurrency and other futuristic source of wealth
Yes , I am a evinormental scientist from the analysis carried out petrol has a limit to it's extinction but solar energy and also medium of unrenewable sources of energy well surely take over the world ..
But if your interested in learning Bitcoin, you still follow the same professional and be referred to other professional brokerage manager but at a point you will take over or gain more too
@@thinkmedia5705 we have it in saudi too
Ahhhh, Saudi Arabia. The once glimmering nation with extreme wealth, now all being squandered away on Wahhabi fundamentalism, luxury cars, clothes, watches and of course my favorite...blondes
You think those rich guys are going to screw each other's sisters? They just look in the mirror and know THAT ain't gonna happen!
Replace the oil. There will be no stopping for India.
Russ G are you implying that arab women are ugly?
you guys can keep your blondes, your self masturbatory belief that all nonwhites desire your women is just a sick fantasy.
This comment hasn't aged well
Truthfears Guilty...jealous of what? an economic crash? nah
That's a situation that's similar (in some ways) to the view held by some people in the USA. A few people think the government can provide more and more benefits while increasing taxes on companies and rich people. But when rich people and companies move away to friendlier locations there is less and less tax revenue which will result in fewer and fewer government jobs and benefits. It's always going to be a delicate balance.
Back to tents and camels
I pity the camels
We still have tents and camels ,, I mean beside our palaces and Rolls Royce’s
@@abdullahalshehri3273 Yes for sure. Rolls Royce's without OIL .
@@freecoder522 we still have too much oil , but don’t worry I can get Tesla anytime hhh😛
@@mdstate829 🤣🤣 aha , ok , continue
July, 2021: Oil price $75 per barrel!
Kaching!!!
Saudi Arabia was a participant of the Oil Embargo of 1973. As I remembered, energy prices quadrupled by 1974. If you artificially inflate the price of a given commodity, like what happened with oil in the 70's, you eventually kill demand.
If you wanna know what Saudi Arabia would be without oil, look no further than right next door - Yemen. They are the exact same people, now google the human indicators between Saudi Arabia and Yemen.
I am an Indian.But I work in Saudi Arabia.Saudi's are very good and kind hearted people, they always respect each other
Rahul Golla yet treat you like second class humans
Rahul Golla man what are you? Their goat?
Dimas Irvan no he is a hindi miskin ie a hindu beggar
Thank you very much i dont know how ppl who criticize us would treat us if we were in their land
I’m a Saudi woman allowed to travel ad get a driving license but I don’t want to so plz world give me a break and stop defending any right u imagine i dot have stop watching fox and cnn
Can you please do this again without the bongo drums?
Saudi Arabia is a great example of "don't put all your eggs in one basket" being the oil industry.
But we have in my city 100 oil well we use 8 one of them in my city ghwar which produces 60% of Saudi oil alone and Saudi is the second biggest oil country ww
It's amazing how humans operate.
Saudi Arabia needs oil back above $60 if they want to balance budgets
and that's why they are trying to make a arab version of opec to cause artificial shortages to drive the prices up
Financial Education : well the world will be in peace ( especially muslims) once saudi oil is finished.
The Saudis started the oil price plunge by flooding the market!! The shitheads I mean shitheads told reporters Saudi Arabia can survive off of $20 per barrel oil yet once the price plunge became unstoppable the shitheads started borrowing and talking with other countries on how to stop it. It was not until Saudi Arabia and Russia both agreed to cut back supply that prices started coming back up.
Done !
John Spotts no it's not possible because if they do this america increased their oil production
oil is back up to 75, concerts are allowed all over the kingdom. more than 600 cinemas are to open up across kingdom, and now women can drive as well! things have changed....
Let's hope the Saudi monarchy gets karma'd
WHY ARE YOU LITERALLY EVERYWHERE?
+Master Archer because his comments have a special glitch that causes them to spawn everywhere
Aydin Qasimov I call it the GlitchyShadow effect
Maybe somebody should do a video of how the oh-so-pious royal family acts when out of the public eye. The ultra-strict Wahhabi sect might find it rather upsetting.
GlitchyShadow And then what? Turn Saudi into Syria? Libya? Iraq? Muslims love authoritarianism. They live under it. It's better that way. Dictators and Kings keep the Islamists under control. And it should be kept that way.
That financial centre in Riyadh looks pretty good.
It'll be converted into camel stables in 30 years' time.
its really cool ive been there but they havent opened it yet for financial reasons, supposedly will open next year
back 2 the tents 4 them.......
يا حليلك
Back in 90's. I still remember when then prime minister of Malaysia said the M.E countries should not only depends on Oil based economic, trade based on USD price regime and encouraged them to invest in agriculture. Back then some quarters laughed at him.. now we see the consiquences.. if i given opportunity to turn arround the GCC economical strenghth i will chose industrial based approach... simple idea make greater advantages.
Maybe think-tank should contact me..
whoever did sound for this went a lil nutty with that background music for awhile
what does not celebrating valentine's day have to do with anything?
To make Social Justice Warriors angry and dislike other cultures more.
No problem, the problem is in outlawing it.
orange moonglows
Well... it DOES demonstrate a functioning mind... There's that.
I wish we didn't have Valentine's day. Just another commercial holiday created for the profit of restaurants, florists, candy makers, gift card makers, and jewelry stores. Oh, and one more way for women to control men: "What no Valentines gift? All right then, you get to sleep on the couch"!
St. Valentine was a Catholic monk(?), so I guess it's "too religious" for the Saudis.
Oil is a curse to our world. So many cleaner ways to go about our business but we are not mature and clever enough for that.
Bullshit.
several years ago Harvard had completed a study electrical production via wind turbines concluded that if we utilized the the available mid west land that has the available winds we could produce 16 times the amount of electricity that this was using at that time. but that would put out of business so many other highly profitable energy producers, wouldn't it???
I can't wait
solar power is the way to go and sale it to other countries
The Saudi's missed that boat year's ago to the Chinese and the Americans.
Americans actually power themselves on Coal. With only the rich cities like San Fransisco or Honolulu using wind, and solar power. Nuclear power also plays a big role.
Coal is declining very rapidly, being replaced (mostly) by natural gas.
Wind is growing fast. As is solar (off a very low base.)
Not difficult to find the numbers...
+Protoman the time is changing coal is going to be no more clean energy is the way the are seeing it we don't need war the people are killing them selves on earth water and land is Poisson
Solar energy is the most dirty. Very much pollution is made while creating panels and accumulators.
When the oil runs out, those who have secured their future will be fine. Those who haven't won't be. They haven't diversified to other industries, they have only invested in other countries industries. So those who have investment will live off that, those who don't will have nothing. The country could stagnate back to its previous economic status pre 1950. The wealthy would leave to America and Europe. Unless the Wealthy continue to fund the less wealthy from its foreign investment.
The problem is poverty exist in European and western civilization I remember I read in news paper a poor old Brit women see in the winter while sleeping she couldn’t pay gas bil so they shut it on her and she freezed to death poverty is a real crises in there in working class
crude oil is not only saudi bussiness.. billion upon billion people do hajj and umrah to mecca. so much income.
Turn up the volume!
Yeah but we do work for a living. It's not like the government is giving me free money.
hatim saif or hatim dagger
+Hatim Saif I see many 20-year olds driving Lamborghinis, Ferrari, and many other expensive cars in Dubai. These kids don't work to afford that.
You have not a clue what work is.
End of Saudi.
Why dont you guys enter into manufacturing economy just ask china to build manufacturing industries otherwise you guys going back to goat hearding🤣🤣😂😂
Id say most live for a living and no they do not work for it bc they have no idea what work really is so i dont blame you at all you probably think you work for a living
How many millions of square miles of desert, perfect for solar, and they're drilling oil.
How do you thinkg solar panels are built? With silver and lithium, mined with oil. ALOT of oil. People here are so moronic.
So how is this going to play out? And in particular what if any influence will Iran have in this Saudi changeover. Is some kind of agreement between these countries possible, since, as I understand it, they are not on friendly terms.
I am pessimistic about their chances.
Wahbism has crushed the population's interest in working for material rewards, while leaving them with belief that they deserve material rewards.
I am living in saudi arabia right now. It's pretty shit here.
go to Kuwait its better
you deserve living there.
But it pays well though
generic name not all places are go to jeddah (beach hood)
I can explain it in 2 words! Electric vehicles!
say wot? 30% unemployment? What sort of a nut case situation is this? Singapore has Zero resources , zero land mass , zero population by comparison to the Saudi's and yet in the market place they kill these clowns. This is total mismanagement top down and backed by the US. Top work Uncle Sam.
Just to mention. Women Can drive from now on, Congratulations to all women !!
You know what the business community thinks of you? They think that a hundred years ago you were living in tents out here in the desert chopping each other's heads off and that's where you'll be in another hundred years, so, yes, on behalf of my firm I accept your money.
"Saudi Arabia's Gigantic Oil Problem" is USA
rubel mica Good. Hope Saudi goes bankrupt soon :)
@@sharonishere yeah soon
@@sharonishere we can’t involve innocent people
To stay the k barrel as spares well of us production
because the price goes down doesnt mean it running off
Right now in Saudi Arabia:
- women driving is coming soon -> I AM SERIOUS [CONFIRMED]
- cinema will be back within less than 20 months -> also serious
- valentine's day -> nobody really cares
- economy is becoming more diversified
- more than $750 billion invested around the world
- all the $1.5 billion infrastructure projects will be implemented
- more foreign investment is coming to the Saudi economy than ever before
- Aramco IPO in 2018
- increasing profits from mineral resources
- start a huge military industry company called (SAMI)
- reduce unemployment to less than 7%
- religious people do not interfere with the economical issues
They should look at Iran... but they would be too much scared of democracy.
the hundred dollar question is why crude oil prices fall down ? were they incorrect high before ? what's the reason ?
Lots of coastline in SA. Water will be more valuable than oil soon so build desalination plants along the coastline and use oil for the power source
this is not Explanation, this is Criticize and a gutter press cover to attack Saudi Arabia
Hounrabul Integrity - this is just a quick summary of some of the problems facing Saudi Arabia. Every country has problems and it's only by recognizing our problems and discussing them can we come up with solutions. We live in a global economy and what affects one country will often have flow on impacts on other countries. I wish Saudi Arabia well because in the long run no good would come from their destruction.
komakaze komakaze komakaze komakaze True my friend. however attacking or criticizing something solve nothing - honest advice would discuss an economic problem economically & suggest an economic solution.
exploitation it's a different matter
ex. What is cinema's, women drive, and valentine 😍 relation to the economy or oil or income source diversity ?
I don't understand, why do foreigners feel entitled to criticize our internal affairs?
It's not like Saudi allow's tourism, let alone non-Islamic ideals..
Dear "Mohaamd_7" ; mohammad didnt took other beliefs into consideration, and that is the root of Jihadistic problems; 6 Billion humans against 1 billion of divided Jihadists;
LOVE THY BROTHER was taught by a Peaceful JESUS, but mohammad hid JESUS is message only to push Jihad, fueled by Hatred.
Take the Freedom that belongs to you;
READ THE GOSPELS and seek a Real Prophet;
JESUS IS THE PRINCE OF PEACE.
wgt
Mohaamd_7 I agree. It is extremely arrogant on the part of westerners to come in and tell another country how it should be run. It is there country and they should be able to run it how they please. Why are white people so pompous they think only they can run in and fix all the worlds problems. How about the US gets itself out of debt before it tries to fix issues in another country.
I agree with you why do foreigners come into my damn country telling me I should be Islamic and that if I don't I and my family will be killed and burn in hell.
if you guys dont enter manufacturing industry with china building this industries now you guys going back to goat hearding in a decade🤣😂😂😂
I don't understand why you think you are entitled to not be criticized by thoughtful people.
Either you can play the background music or do the narration
How things have radically changed in just 6 years
their oil and their money what has the world to do with them
no has a right to open this kinds of objects. non western Nor others jealous people
Brother the so called Royal Family has lost their way. They don't follow the examples of the Prophet (P.B.U.H) at all. They are corrupt and blood thirsty and only care for themselves. Don't be fooled.
+Abdulai Bah Allah who put up al saud family don't you belive in Quran.
+Abdulai Bah yeah because the rest of Muslim countries are angels
son of makkah Believe in Quran, Allah, Muhammad but definitely not the Saud family.
Hallowjin Hard to find "angels" nations anywhere in the world. Those you think are champions of human rights turn out to be the biggest abusers. Just dig a little deep.
Longlive saudi arabia, respect from philippines...
padraigm74 you excel at being better than the people you disagree with. Or so you tell yourself.
@Bantham Nobilis are u sure
OMG, no paganic Valentine's day in SA? Sit in your valentineland and drive around happily. Thank you very much :)
We don't need the background music to keep us entertained, thank you.
This was a great analysis. It's not just Saudi Arabia. Most of the Middle East countries will collapse without oil and return to third world countries. This includes the advent of "efficient" renewables.
The volume of the music is too loud for the comments to be herd well.
Education is Very strong 💪 yang generation must accept time is chenge, mayby other 70 oil be in Sudia Arabia but how other generation so now is time to star do different , all my best personal regards happy weekend thank you very much for shering video,
Saudi arabia is great country.
Why don't u learn from Dubai. When they realised they were running out of oil, they turned it into one of the world's largest tourist attraction.
Two years later, Saudi is doing fine
Abdalla Ahmed it's not doing fine but the report never they would just instantly die it will take atleast till 2030
We are one year later and it looks they'll have a goverment deficit of over $175 billion. 1/3rd of their reserves gone in a year. Also a few royal princess got killed for trying to overthrow MBS. Next year it will be civil war in Saudi Arabia with a bit of luck.
cheaper oil she said, crude oil price been hovering on $100 for a while. explained in 10 seconds
We are already seeing effects of this here in saudi arabia. So far as oil is almost as the same price as water unlike previously where oil was way cheaper than water.
There was oil wells in Ahsa but probs got dried bec of ghwar
Update
Women can drive now
UPDATE! Volvo is the first car maker to go all electric and hybrid....that is a great start.
Dark Dan What energy source are they going to use to charge the batteries? Do they spontaneously recharge? It is the dog chasing the tail.
Since when celebrating Valentine's day became a a major parameter in a country's economic and social progress ? Do you celebrate or provide Eid holidays in the US for those who observe it ?
Honestly i like saudi arabia they stick with their ideas even if the whole world thought it to be a not a good choice
Once the oil money is gone they will be living in tents again.
Maybe if you guys turn down the background music I could actually hear what she is saying!
background music is too loud
Lower the background music and increase the voice volume.
Women do work in saudi - loads worked in the investment bank My friend worked in
Oil prices went sky high a few years ago, but it still never came down to a £1.00 or lower per litre . Everybody in the chain got bigger bellies/greedy! and now the price has dropped they struggle to fuel their greed which they never had before., I can't see how they are worse off .
وش يقول التقرير هذا ؟
asa pa sa lokal na saudi...
Hard to understand the voice. especially with the music. The only issue is keeping the radicals suppressed.
Put on the London exchange, machine learning from UK start ups, let us in the UK bring those businesses.
Background music is too noisy and loud. it would be nice it is low.
God bless the leaders of this great nation of Saudi Arabia they are so liberal to the expatriate community Saudi will never run out of wealth
Well, everything changed now.
oil reserve goes down, and Saudi Arabia tries to hide this information from the world, but the amount of water used to extract oil goes to be more important than means less oil.
Not many wants to work when the only means of employment is becoming a pilot and flying a one way trip into a building.
How about doing that again, a little slower and with audio more suited to us old guys :-)
what happens when oil runs out how will we managed to survive 😫😥
I thought peak oil has reached… but oil prices has in fact decreased since my birth… wtf
The war on terror was a blessing for the Saudi's. Iraq's oil fields being put on hold, the intense U.S. consumption to power the war machine, and Chinese growth led to a boom in oil prices.
I had a hard time hearing the narration because of the music. At the start it was bad enough, then the drums got way out of hand.
drop the music , then turn up the voice!
Tell me if I'm wrong: Their economy relies on oil, but the global value of oil is deflating. This is making them vulnerable to a complete economic collapse, which is why they are attempting to shift the nation off the reliance of oil before its to late?
Aren't we having the same dilemma with things like Taxis?
Music is too loud
Speak into the microphone or turn the music down!
Yeah can't hear much with those drums in the background.
The ruling family needs to move all their assets out of the country. Then they need to change the government to a parliamentary system, much like Great Britain. Then be prepared to walk or run away if things do not work out.
Wells are drying up...now using steam to get the rest of the oil sludge out..maybe 5 more years??
Probably why opec is making less and causing prices to rise. It takes time to change but they has time.
And then there is the looming threat of electric, cars. And buses. And trucks...
That intro now needs to change :D
Am I the only one thinking the music is too loud for this voice?
october 2021 oil prices 80$....