Yesterday, it was announced that Saudi Arabia and Russia propose to halt production at January 2016 levels.
Rystad Energy’s recent government income study shows that in fact Saudi Arabia and Russia are the most effected by low oil prices in terms of government oil and gas revenue. For Saudi Arabia, 2016 income is expected to be US$250 billion lower than in 2014. This has a tremendous effect on the economy given that oil and gas revenue made up around 45% of total GDP in 2014. Rystad Energy estimates that the Russian income from oil and gas has reduced by around US$150 billion from 2014. The study has also shown that it is the OPEC countries that show the highest dependency on oil and gas income in their total GDP.