Impact of energy consumption in the major industrialized countries on Saudi Arabian oil production

Saudi Arabia is the world's largest oil exporter and an important trade partner to the major industrialized countries (MICs), which include the United States, United Kingdom, Japan, Italy, Germany and France. Energy-production and other data for these countries have been collected and analysed. An econometric model has been developed to estimate the impacts of variables such as energy consumption and production, the price of crude oil, and OPEC and non-OPEC oil exports on Saudi oil production. The major finding is that the price of oil is not important in determining Saudi oil-production policy. Total oil production in the MICs, oil exports of major non-OPEC and OPEC members excluding Saudi Arabia, and the GDP of Saudi Arabia are found to be the important determinants. Our model may help the country's national planners to make better estimates of annual budgets and improve economic and management planning.