Final answer:
The main difference between Saudi Arabian and United States oil production is the cost of production, with Saudi Arabia requiring less time per barrel and having a comparative advantage.
Step-by-step explanation:
The main difference between Saudi Arabian oil production and United States oil production lies in the cost of production. Specifically, Saudi Arabia has an absolute advantage as it requires less time to produce a barrel of oil compared to the United States. According to various data tables, it takes one hour to produce a barrel of oil in Saudi Arabia while it takes two hours in the United States.
Saudi Arabia also has a comparative advantage in oil production, meaning that it gives up less compared to the United States when allocating resources to produce oil, exemplified by the ratio 1 < 2 in terms of hours per barrel, as per different comparative tables .
This efficiency in production is a significant factor for Saudi Arabia's position in the global oil market. Furthermore, Saudi Arabia has some of the world's largest oil reserves, which contributes to its capacity to produce oil more efficiently than the U.S.