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By John R. Presley (auth.)

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Domestic consumption of energy output is expected to more than double between 1980 and 1985, but even by 1985 it is likely to be much less than 2 million barrels/day for all energy supplies (oil, gas, marine fuels); consequently, given current production levels, there will still be a large surplus of crude oil and related products to export. Organisational Structure of the Oil Sector, 20 1972 onwards Historically, three oil companies have been involved in the country's oil industry. Aramco received an oil concession as early as 1933; this covered an area of l 285 000 square kilometres.

However it must be pointed out that the nature of public-sector involvement may change gradually over the next decade. This may produce less concentration upon construction activities and greater emphasis upon human resources development and industrial/manufacturing activity. (c) demonstrations of the government's intentions to increase its spending, even allowing for the labour force growth constraint, in the Third Development Plan. 6 indicates, total civilian expenditure by the government, at current prices, should reach SR 701 billion over the Third Plan period.

Cent per annum; from 1397 onwards the inflation rate has declined to levels which compare very favourably with western economies. The latest figures in fact indicate a fall in the Cost of Living Index of over 2 per cent annum in 1400/1 and a stable general index during the first two quarters of 1402. The cause of inflation was not difficult to ascertain in this period. The government had always been aware that accelerating its own expenditures too much could lead to inflation; in the interests of economic development in the mid-1970s it had been prepared to walk a tightrope between pushing economic growth to its limits and maintaining price stability.

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