Saudi domestic oil consumption up 6.2pc in ‘06

JEDDAH — Saudi Arabia’s domestic oil consumption last year went up by 6.2 per cent to 2 million barrels per day (bpd) from 1.89 million bpd in 2005 in the wake of economic boom, while its oil production for the international market declined by 2.3 per cent during the same period, according to the BP Statistical Review of World Energy June 2007′ released recently.

Economic analysts attributed the growth to the surge in economic development, especially the decision to set up economic cities, industrial estates and IT parks in different parts of the Kingdom.

The BP report said that coal continued to be the world’s fastest growing hydrocarbon in 2006. Global consumption rose by 4.5 per cent, below last year’s rapid (+5.7 per cent) growth, but well above the 10-year average.
The report also said that the Kingdom’s natural gas production also rose by 3.5 per cent, from 71.2 billion cubic metres in 2005 to 73.7 billion cubic metres last year. However, there was no change in its refining capacity that stood at the same level at 2.1 million bpd.

Referring to oil production in the Middle East, the report said that Opec producers implemented a new round of production cuts late in 2006, the first in nearly two years. As a result, Opec output rose by just 130,000 bpd, with gains in the United Arab Emirates (UAE) and Iraq offset by reductions in Saudi Arabia, Venezuela and Nigeria.

Iraq’s oil production surged by nine percent from 1.83 million bpd in 2005 to 1.9 million bpd last year. The UAE recorded 7.3 per cent increase in output from 2.751 million bpd to 2.96 million bpd during the same period.

Zawya