by 2030. It is pumping out 10 million barrels a day. It’s max capacity is circa 11.5 million barrels a day. The differential is at its lowest between max capacity and daily volume. And the trend is towards decreasing this further.
It is consuming 25 pct of its oil output. Burns oil for electricity generation - 900000 barrels per month - (this number doesn’t seem right, too low ; it is only 1/330 of its monthly products ton rate of 10 million times 30.)- highest burn rate ever (for electricity production I think).
It’s oil consumption for electricity has more than doubled in last 10 years. In the month of Ramadan electricity consumption peaks since the post fast (iftari?) Lasts into “wee hours”. (By same token Hindus burn too much oil to light lamps).
To balance budget, oil price has to be 106 dollars per barrel. It’s is 62.
Source WSJ from circa 3 days ago. Figures written from memory.
Is Saudi Arabia a crumbling economy? What is your take?
No ... Saudi do have a strategy ... It will come in action by 3rd quarter next year.
Saudi importing oil is so stupid a notion that I can't believe someone would seriously entertain that. Saudi are not the US that has such a huge energy consumption requirement and Saudi has tremendous amounts of fossil fuel too.
My personal experience is that Saudis are beginning to get smart.
With the drop in oil price there was a global move to slow down oil production to keep the price high. Saudi kept going on many projects particularly to deal with rising local power needs. In fact they have a good window to invest locally. They are already switching to higher international standards which means less waste and more techniques being adopted to salvage as much energy as possible for use.
Here is a Sept 2012 article. States the same. Electricity consumption growing at 8 pct per year (so double in 9 years). 11 million barrels per month output. Oil consumption growing 6 pct per year.
Oil for.domestic use subsidized - 5 to 15 dollars per barrel. With young popukation consuming more expect oil usage to grow.
Unless subsidy removed.
By the way saudi arabia per capita consumption greater tha US.
Saudi Arabia, which depends on oil for 86 percent of its annual revenue, is accelerating exploration for gas and is planning to develop solar and nuclear power to preserve more of its valuable crude for export. The kingdom has refused to import gas, unlike neighboring producers such as Kuwait, and the United Arab Emirates that also lack fuel for power generation.
This net oil importer stats is probably based on current projected figures and is not a true representation of what their fuel production will be like in the future.
And read this …
Unconventional gas will help meet Saudi Arabia’s own energy demand, and is the preferred fuel for power generation and water desalination because of its increased efficiency and cleaner burning qualities compared to other fossil fuels.
The resulting increase in the total gas share of the Kingdom’s energy mix will expand the volumes of higher value diesel and crude oil available for export.
they are intentionally keeping their production flowing under a capped rate in this time the population has grown and hence the 25 pct of home useage figures. They have resisted gas import so far and if they need to import it is likely they import gas before they buy oil.
But my feel is that solar and nuclear is coming to Saudi in 10 years and for now they will exploit higher technologies to produce gas from the more difficult locations.
Additonally if they import they will have to start taxation. But I believe they will start some sort of fuel tax soon anyway to encourage residents to economise and I believe we will start to see different types of vehicles on their roads soon. They are likely to go down the climate change eco-friendly route like many European countries have … Don’t underestimate the Saudis - they’ve been in this game longer than the other Arab nations.
Also, it is my hope Allah advises the Saudi people to lower their carbon footprint a bit - per capita theirs is the highest. Unfortunately, in the west, Jesus appears to have given the wrong message to the deeply religious - that the earth is here for man to use to his hearts content. Carbon footprint be damned.
Of course, the poor are not part of this equation - for they haven't worked hard enough to have gained enough assets and resources to enjoy the bounty that is bestowed on the rich and powerful.
