![]() In Europe, it is seen as a way for the continent to become less dependent on fossil fuel suppliers like Russia and Saudi Arabia. Though it may be benefitting Saudi Arabia today, the war in Ukraine is actually accelerating the planned transition into renewable energies. This is partially because, in the longer term, the Western world is trying to move away from fossil fuels altogether. But analysts say that Saudi oil reserves will only last another 60 years at current rates of extraction.Īnd, as a 2020 report for the Brookings Institute pointed out, "in the medium term, revenues from oil are expected to decline in the face of reductions in global demand starting around 2040, if not sooner." Because of the Ukraine war, the EU plans for renewables to make up 45% of power supplies by 2030, instead of 40% Image: Justin Ng/Avalon/picture alliance Saudi Arabia earns 80% of its export income with oil and it makes up around 40% of the Saudi gross domestic product, or GDP. There are a number of reasons for the Saudi businessman's forecast. But my son? He will probably ride to work on a donkey." "Then my father drove to work in a Mercedes. ![]() In Berlin recently, one Saudi executive gave his German colleague a lighthearted explanation of his country's economic trajectory: "My grandfather rode to work on a donkey," he said. However, this state of affairs won't last - and the Saudis know it. That's despite his publicly stated aversion to the country's long-criticized human rights record.Īll in all, things would appear to be looking up for Saudi Arabia, a nation Biden once described as a "pariah state." High oil prices are forcing the US government into warmer relations with Saudi Arabia, Iran and Venezuela Image: Jae C. It's one of the only oil-producing nations that could increase output fairly quickly.Īmong those now trying to get closer to the authoritarian monarchy includes US President Joe Biden, who is considering a personal visit to Saudi Arabia. Additionally, the increasingly critical need to try and lower those prices by putting more oil on the global market also means Western countries are seeking a better relationship with Saudi Arabia. Over the past month or so, it has become clear that Saudi Arabia will benefit from the war in Ukraine.Īs one of the world's largest oil producers, the country profits from rising fuel prices.
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