Saudi billionaire sees a world awash in oil

After the recent discovery of shale oil in the United States, many are criticizing the Saudi elite for ignoring the economic threat posed by the Americans. One of the most influential critics however, comes from Prince al-Waleed bin Talal, a Saudi billionaire who invests in everything from Disney to Twitter to 5-star hotels. The Prince warns that the American shale discovery would soon threaten, not only the Saudi economy, but also that of the members from the OPEC. Although Saudi Arabia has already shrunk its oil production by nearly 700,000 barrels a day, the Prince still feels that the leaders are not progressing fast enough to diversify their oil based economy. He believes that in less than two years, the United States will become a leading competitor in crude oil with prices falling below $80 a barrel if more discoveries emerge within the United States. With about 92% of the Saudi Arabia’s annual budget coming from oil, many share his concern as political figures continue to push for the expansion of oil output. With an enormous stockpile of foreign reserves, I feel that this is giving the leaders a false sense of security as prices will continue to drop as global supply increases.