Saudi craving for oil comes at a price

As Saudi Arabia

Domestic Saudi consumption of oil jumped by 16.4 per cent year on year in August because of an unprecedented surge in the burning of crude, according to a report by the International Energy Agency in November. As a result, the IEA has revised up its forecasts for Saudi domestic oil consumption to 2.6m barrels a day in 2009 and 2.8m barrels a day this year.

Last year, the kingdom said it increased its production capacity to a record 12.5m barrels a day. But, to meet domestic and industrial power demand, it burns 1.25m barrels a day, according to the ministry of water and electricity.