Saudi Arabia’s government removes oil minister

Saudi Arabia’s government removes oil minister

Ali al-Naimi, Saudi Arabia’s veteran oil minister has been replaced by former health minister Khaled al-Falih as part of a government overhaul to meet a reform challenge.

The world’s largest crude oil exporter revealed extensive economic reforms in April called “Saudi Vision 2030.” The scheme will focus on policy and budgetary changes to be introduced over the next 15 years in hopes to slow the country’s reliance on oil.

An estimated 70 per cent of Saudi Arabia’s revenues came from oil last year, but it has recently struggled due to dropping prices.

Salman’s refusal to cut oil production has led to an excess of supply, resulting in a sharp decrease in the price of oil. This also meant the country has earned less money.

Falih worked at Aramco for more than 30 years serving as a chairman and will now manage a new department leading energy, industry and mineral resources.

“We remain committed to maintaining our role in international energy markets and strengthening our position as the world’s most reliable supplier of energy,” said Falih.