Final answer:
Saudi Arabia holds more than 20 percent of the world's known oil reserves, playing a crucial role in global energy supply and economics. As an influential member of OPEC, the country can significantly impact global oil prices. With oil being a critical component of the world economy and global energy consumption, the large oil reserves of Saudi Arabia are of great geopolitical importance.
Step-by-step explanation:
More than 20 percent of the world's known conventional oil reserves are located in Saudi Arabia. This country is not only a key member of the Organization of Petroleum Exporting Countries (OPEC) but also holds a significant role in determining global oil prices due to its vast reserves. With the entire economy largely based on oil exports, Saudi Arabia's political and economic power has grown on the international stage.
It is interesting to note that despite possessing a large percentage of the world's oil reserves, the U.S. consumes a significant portion more than it owns. OPEC, of which Saudi Arabia is a member, attempts to control the world's oil supply by setting production quotas for its member countries, influencing global oil prices.
Given Saudi Arabia's contribution to the world's oil supply and global energy consumption relying heavily on oil, Saudi Arabia's oil reserves are a critical component of the world's energy economy. With the global conventional oil resource projected to be depleted by 2050 and concerns about climate change, the prominence of Saudi Arabia's oil reserves becomes even more significant.