range petroleum industry initiatives suffer; Inconsistencies and unknowns are not conducive to future investments, when long-term, capital-intensive industries require a good financial return and stable prices, as well as clarity of future demand. To illustrate just how vital these elements are for long-range planning, let me offer a brief timeline reflecting how Saudi Arabia, as the world's leading oil producer and exporter, has planned upstream and downstream activities in response to projected energy needs over time. Earlier I noted that it was not until well after the discovery of oil in commercial quantities that the Kingdom's production began in earnest. Following a period of production and reserves growth, especially after World War II on through the 1950s and 1960s, Saudi Arabia entered a phase of tremendous growth. Between 1972 and 1974 alone, oil production climbed 70 percent. By the end of the 1970s Saudi Arabia had designed, constructed and commissioned its landmark Master Gas System to provide domestic industries with fuel and feedstock for economic development and diversification. From the 1980s into the 1990s, the Kingdom's petroleum industry entered another strategic phase, evolving from a crude-oil production powerhouse to a fully integrated, international petroleum enterprise. This period saw us forging our first international downstream joint and equity ventures. By the turn of the century, the transformation continued with oil and gas megaprojects, as well as further international ventures, and new refining and petrochemical initiatives at home and abroad. --More
