Saudi Arabia Market Analysis: Oil & Gas Sector Opportunities

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Saudi Arabia market analysis

An intriguing aspect of Saudi Arabia’s market analysis lies in the opportunities within the oil and gas sector. Ranked second globally in petroleum reserves, the country naturally emerges as one of the largest exporters in this industry.

For those interested in the economic outlook for the petroleum and gas sector, let’s look at the whole explanation in the article below!

Oil & Gas Sector Overview

Saudi Arabia market analysis

As explained in the opening statement, the petroleum and gas sector in Saudi Arabia is one of the biggest in the world because its reserves can reach 17% of the world’s total oil reserves.

Saudi Aramco is one of the big players in energy industry trends managing oil and gas. This energy and chemical company works upstream, midstream, and downstream parts. Where in Q2 2023, net profit reached USD 30.1 billion

Even though it operates in the industrial energy sector, which is known to be less environmentally friendly, Saudi Aramco is trying to produce oil and gas with low emissions.

In pursuit of this objective, the country is ramping up its procurement of numerous eco-friendly tools. For instance, investments include the adoption of environmentally sustainable machinery for harnessing and storing hydrogen, carbon, and renewable energy sources.

Opportunities in the Oil and Gas Sector

Saudi Arabia market analysis

Climate change concerns indirectly affect perceptions of the conventional oil and gas industry to stay sustainable. Nonetheless, Saudi Aramco remains steadfastly optimistic about both sectors, as evidenced by its ongoing investment efforts. 

The investment value reaches billions of dollars so that in the next decade, market demand can still be met optimally.

One obstacle plaguing this industry is the emergence of corrosion in the various technologies they use. Therefore, Amraco is trying to be one of the pioneers in using non-metallic technology, such as advanced plastics.

This method is not solely a corrosion solution but also extends the investment rotation and increases market interest in their products. Saudi Arabia is even aware of the increasing prospects and stakes in the renewable energy segment.

This inclination leads them to invest extensively in a wide range of eco-friendly technologies aimed at producing hydrogen, including green and blue hydrogen production methods. 

Furthermore, Saudi Arabia actively advocates for Utilization and Storage projects as part of its commitment to upholding the Sustainable Green Initiative, demonstrating its dedication to advancing environmentally sustainable practices within the energy sector.

The Saudi Arabia market analysis above shows that the opportunities in this field are still significant, especially for old players. The government and managers are also trying to make this industry more environmentally friendly.

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