The eroding Saudi cost advantage Saudi Arabia The Saudi cost disadvantage No, that's not a typo. The much-vaunted Saudi chemical cost 'advantage' has been eroded over the last two decades via a combination of heavier slates, market linked feeds, rising costs and shrinking discounts. At the same time, falling feedstock costs in competitor regions such as in the US has meant that as US shale has reset the cost curve, the Saudi industry hasn't kept up and today operates at an active cost disadvantage vs the US ...