Summary of Saudi Arabia’s Oil Problem

Looking for the video?
We have the summary! Get the key insights in just 5 minutes.

Saudi Arabia’s Oil Problem summary

Editorial Rating

10

Qualities

  • Eye Opening
  • Background
  • Hot Topic

Recommendation

The transition from fossil fuels to alternative sources of energy is going to require major adaptation for everyone. For countries like Saudi Arabia, with an economy based on oil production, the transition is likely to be particularly intense. This concise and informative Wendover Productions video explains Saudi Arabia’s history, how recent events have influenced oil prices, and what Saudi Arabia will have to do to cultivate economic activities that don’t rely on oil.

About the Speaker

Sam Denby is the creator of Wendover Productions, an educational YouTube channel with over three million subscribers.

Summary

Saudi Arabia has benefited from about 80 years of high oil demand.

In 1932, tenacious Arab tribal leader Abdulaziz bin Abdul Rahman Al Saud created the modern Kingdom of Saudi Arabia. Though he had no solid evidence, Abdulaziz believed the country was rich with oil, and in 1938, preliminary drilling showed that he was right. His new kingdom was desolate, dry and somewhat undeveloped, but the “single largest proven oil field on earth” lay just below the surface.

The discovery of oil brought peace and prosperity to Saudi Arabia, and the citizenry was happy to accept the absolute power of their monarchy as long as the Saudi government plied them with subsidies, housing and infrastructure. The year 2000 brought a massive uptick in oil prices. Saudi Arabia enjoyed a tripling of its GDP and was courted by international businesses. Growth seemed “endless and effortless” until 2008, when oil prices became brutally volatile.

Oil ...


Comment on this summary

More on this topic

By the same author

Space: The Next Trillion Dollar Industry
9
Airlines’ Business Travel Problem
9
The Simple Genius of the Interstate Highway System
10
Why China Is So Good at Building Railways
10
American Sports’ Battle for China
10
The Art Market is a Scam (And Rich People Run It)
8
The Incredible Logistics of Grocery Stores
10
The Electric Vehicle Charging Problem
10
Why Chinese Manufacturing Wins
7
How Overnight Shipping Works
8
How Africa Is Becoming China’s China
8
The Economics of Airline Class
8
Why Airlines Sell More Seats Than They Have
8
The End of Saudi Arabia’s Ambitions
7
MBS Wants Saudi Arabia Fund to Reach $2 Trillion in Assets
8
Reckless in Riyadh
2
MBS
9
The Unwanted Wars
7
What Happens in Sudan Doesn’t Stay in Sudan
8

Related Channels