Saudi Arabia: More on net exports and revenue
The April 27th posting on this web page addressed the issue of net exports and their significance to oil importers like the U.S. and China. That same week my friend Tom Konrad took me to task on my comments in his article for Forbes. I suggest you read both and look at this graph based on BP and EIA data concerning the impact of falling net exports from Saudi Arabia on their export oil revenue.
Based on the EIA data for the first 4 months Saudi Arabia’s revenue for 2012 could reach $297 billion dollars if both net exports and oil prices remain stable thru year end. That revenue would be nearly triple the $107 billion seen in 2004 on 1.7 million barrels per day lower exports.
I agree with Tom that in the end it will be price but at least for now Saudi Arabia appears to be coming out pretty well while the oil importers compete for a smaller net export supply.