Analysis of the Qatar and Saudi Arabian Oil and Gas Industries (Essay Sample)

Analysis of the Qatar and Saudi Arabian Oil and Gas Industries
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Analysis of the Qatar and Saudi Arabian Oil and Gas Industries
The Qatar and the Saudi Arabian oil and gas industries are two mighty giants in the Middle East although the two industries vary in some matters. Qatar oil industries presume some strengths including being one of the world’s largest exporter of petroleum which is the most significant strength and strong business networks around the world (Markovska, Taseska, & Pop-Jordanov, 2009). Conversely, Saudi Arabian oil and gas industry’s strengths include the most significant strength of having the second largest oil reserves globally and also a high degree of exploration activities.
An economic assessment of the two industry reveals that both economies substantially relies on the oil and gas industry as the main economic activity. Qatar economic assessment indicates that Qatar is outpacing Saudi Arabia averaging an economic growth projection of between 3.1% and 3.2%. Contrastingly, Saudi Arabia economic growth faces a critical time of decline as the forecast of growth slumped from 2% to 0.4% according to IMF report. The rise of Qatar as the king of the oil and Gas producing countries indicates extensive investment in the industry in terms of finances and resources.
The main weakness facing the Qatar industries is limited oil reserves for exploration while that of Saudi Arabia is the reliance of crude oil export due to lack of sufficient refining infrastructure. The two industries also share a commonality in the weakness which is a limitation in productive capacity to yield optimal value for exploration of petroleum in the countries. The growing demand for LNP products globally presents a joint opportunity for the two oil and gas industry (Markovska, Taseska, & Pop-Jordanov, 2009).
Qatar industry embraces opportunities such as price increase of the oil and gas exports and also advancement in exploration ...