To understand the effects of oil production for Saudi Arabia, we can look at environmental, economic and social consequences.
Environmental
There are concerns that the scale of oil production in the country is having a negative effect on the environment. Saudi Arabia has some of the highest CO2 world. This is because oil is the country’s number one energy source.
emissions in the Economic
In 2016, oil exports were worth €133 billion per year to Saudi Arabia. The economy of Saudi Arabia is heavily reliant on oil production for the stability of its economy. A fall in the price of oil causes a rise in the levels of unemployment in the country.
Social
Saudi Arabia is one of the richest countries in the world. It has a very high standard of living, with modern schools, hospitals and other services. This has changed the lifestyles of many of the country’s inhabitants.
The Bedouin people once lived nomadic lifestyles, moving from place to place to source water and grazing for their animals. Now, many Saudi Bedouins live settled lifestyles, mainly in urban areas.
BEFORE OIL AFTER OIL
Bedouins in 1930
1. How many barrels of oil did Saudi Arabia produce in 2016? 2. Explain one social benefit of oil for Saudi Arabia. 3. Explain one economic consequence of oil for Saudi Arabia.
