Is it possible that most of the Arabian Gulf States will run out of money by 2040? This is as per the latest publications, and with the demand for oil going down along with its price, which has touched $52.
This represents a clear warnings to all of us in the Arabian Gulf countries concern – ing the fact that we are spending above our means, and using our current cash surplus to balance the annual budgets . We are not thinking of finding an alternative to our precious natural oil and gas.
This should serve as a legitimate call to search for new source of revenues. It is unfortunate that none of us are seriously looking for alternative options. Yes, most of our Gulf States have visions for the next ten years, but nothing is moving in that direction.
There is no hope of the oil prices picking up again and surpassing the levels of $114 per barrel witnessed in 2014, the same year when the oil price hit the level of $40.
We in Kuwait have been warning the governments almost on a daily basis of the prospective dangers of depending on a single source of income.
It is time to think, or search for new product, as oil will not last at its peak with alternatives knocking on our doors.
There are new oil discoveries in the world, the USA shale oil and gas being an important evidence. Reducing the oil production and introducing oil quota by OPEC almost every quarter has not achieved much success, or the success was temporary lasting not more than one week.
The warnings that are coming from the Western press are serious. They have forecasted that the Arabian Gulf countries will run out of cash in 2035.
The warning stemmed from International Monetary Fund (IMF), which is a reliable source. Others are citing Venezuela’s current financial situation which is nearly collapsing despite its vast resource of energy. The comparison is compatible. Good luck to our future generations.
By Kamel Al-Harami
Independent Oil Analyst