Indeed, over the past 25 years, Saudi oil policy has generally helped to prevent price spikes and tended to hold prices down with periodic large production increases. Yet, due to Saudi domestic economic concerns, the dynamics of the old game are about to change. The Saudi regime has finally realized that oil wealth is not an eternal fountain. Production planning is now being governed less by strategic geo-political considerations and more by economic need. Saudi oil policy is primarily driven by the immediate revenue needs of a government struggling to maintain a welfare state designed in the 1970s, when money seemed limitless and the population was small.
More revenue needs to be generated and devoted to developing the domestic market.
Yet, any rise in the price of crude carries with it the risk of conflict with the United States. Twelve villages in Qena governorate have been selected to carry out the project. The corporate plan is to act through development organizations that are actively engaged on the ground. Within the plan of action, Upper Egypt is a particular area of concern. The corporation will use the money to act as a mediator between lending institutions and prospective clients.