Saudi Arabia to begin importing oil

[psyah]

Re: Saudi Arabia to begin importing oil

@Southie

Saudi Arabia May Become Oil Importer by 2030, Citigroup Says - Bloomberg Business

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.

Hi Southie

The article itself is giving the clues away …

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.

http://www.jobsataramco.eu/unconventional-gas-program

Furthermore, the population is unlikely to continue growing at such a high rate. It will start to level out.

Also note Saudi have been producing steadily over the past decade …

http://blogs-images.forbes.com/katinastefanova/files/2014/12/US-Production-3.png

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.