Saudi Arabia is set to direct to its oil industry a smaller portion of its $1-trillion strategic investments than previously estimated, Goldman Sachs said in a report this week. The capex plan through 2030 of the world’s top crude oil exporter will see a “capex super-cycle” with $1 trillion worth of investments across six strategic sectors by 2030. “But the oil industry is likely to receive a smaller portion of this than previously forecast,” analysts at Goldman Sachs wrote.
However, natural gas continues to be “a key contributor to the country's decarbonization, economic development, and diversification plans,” AlAzmeh writes. Saudi Arabia will face a set of challenges in finding the money to cover what Goldman’s analysts called the “capex super-cycle.” The Saudi liquidity situation remains tight, per the latest banking system data for May 2024 cited by Goldman.