How are the other oil producing countries doing? [News Reel]

Who has the most to lose? Credit: OilPro

Happy hump day! We’re halfway through the month of April and the sensationalized panic about the oil price has subsided into a quieter, somber acceptance of a new reality (somewhat). I haven’t been as diligent with my morning newspaper routine; I used to flip through the papers first thing at work with a hot drink in hand but werk got bizzier and news got boringer, especially after LegCo.

Since LegCo already announced the official 2016/2017 government budget and forecasted revenue (and expected spending deficit), I need to eventually update the chart I drew up in the Q&A here to include that… Clearly my assumptions were on the optimistic side, huh? I’ll eventually do a proper check on the numbers but we’re expecting a deficit of roughly 4 billion (how much spending exceeds income) based on a government budget (planned spending) of 5.6 billion and an expected revenue (income) of a depressfest 1.5ish billion, if I recall correctly. My “conservative prediction” for the deficit was a billion dollars less, at 3 billion. Guess we’re in for a pretty rough ride.

Anyhoot – In the last couple of weeks, BBC has published a few news articles regarding a number of other major oil producing countries so I’ve curated a batch for your reading pleasure. They’re not explicitly linked into a series on BBC or anything, but these articles all – in some way or another – describe the various ways the plunge in oil price has affected the economies and governments of oil-dependent states:

Petroleum and LNG are the cornerstones of Qatar’s economy and account for more than 70% of total government revenue, more than 60% of gross domestic product, and roughly 85% of export earnings.

Kuwait has the sixth largest oil reserves in the world are accustomed to lavish benefits, such as interest-free housing loans, free education and healthcare, and food and fuel subsidies. (Sound familiar?)

Angola’s economy is heavily dependent on oil. It accounts for more than 95% of export earnings and more than two-thirds of government revenue.

Venezuela has the world’s biggest known oil reserves (even larger than Saudi Arabia). Oil exports account for as much as 95% of Venezuela’s revenue.

The petroleum industry in Nigeria is the largest on the African continent.
(As of 2014, Nigeria’s petroleum industry contributes about 14% to its economy. Therefore, though the petroleum sector is important, it remains in fact a small part of the country’s overall diversified economy.)

Have a good read!


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