Saudi Arabi Oil And Natural Gas

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Question One
Saudi Arabia is the largest oil and natural gas producer of oil in the world attributed to its vast reservoir (Jasimuddin, 2001). The economic growth seen over the years has been dependent upon exploration and production of oil for local and international market (Jasimuddin, 2001). Oil in Saudi contributes up to 40% of its Gross Domestic Product (GDP) and an approximate 80% of its annual revenue (Elachola & Memish, 2016). Largely, the exports that emanate from Saudi Arabia to the tune of 90% are from oil and natural gas products (2016). The country has invested a lot of capital in the exploration and production of oil over the years (2016). Saudi Arabia has enjoyed a competitive advantage over the rest of oil producers for the better part of the 21st century(2016). The world is experiencing a fall in the oil prices now due to a shift in the demand and supply curve. Consequently, Saudi Arabia is beginning to lose its competitive age due to the continuous fall in oil prices (2016). Currently, the world’s oil price is at $42 per barrel and has been fluctuating unpredictably to as low as $30 per barrel (2016). Saudi Arabia is mostly dependent on oil and the continuous fall in prices puts it at risk of economic crisis(2016). Subsequently as the strategy advisor and policy commissioner, by using Porter’s Model of Diamond of National Advantage, it will give the impact oil prices have on the country.
Porter’s Diamond of National Advantage is a classical theory with

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