Saudi Arabia Summer Oil Burn Hits Record High in 2012
From Steel Guru
Reuters reported that Saudi Arabia burned record volumes of crude oil over the summer contrary to its aim of using more gas for power generation to reduce wastage of crude that it could export.
Official government data issued under the Joint Oil Data Initiative JODI showed that during the peak period from early June through September, Saudi Arabia burned an average of 763,250 barrels per day of crude compared to an average of 701,250 barrels per day last year and 747,750 barrels per day in the previous record summer of 2010.
Mr Ali al Naimi oil minister of Saudi Arabia said that more natural gas should be available from fields that only produce gas, or so called non associated fields to meet peak summer power demand, potentially saving millions of barrels of valuable crude for export.
Aramco said that key to this plan was the ramp up of Karan, Saudi Aramco’s first non associated offshore gas field which was completed ahead of schedule, helping boost Saudi gas production by 18% over summer.
Karan which can pump gas free from OPEC constrained crude oil fields should save tens of millions of barrels of crude for export over coming years. But its rapid ramp up was not enough to prevent a rebound in crude oil burning in the world’s leading oil exporting country, as rampant power demand and tight supplies of alternative fuels for electricity and sea water desalination sucked in millions more Saudi crude barrels for burning this year.
Mr Sadad al Husseini former top executive at Saudi Aramco said that “Karan has definitely contributed to reduce crude oil burning had it not been on stream, oil burning could have exceeded 850,000 barrels per day in the peak summer period. But demand for power was significantly higher due to an exceptionally hot summer.”
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