Saudi Arabia is currently in the process of building three new oil refineries in the region largely in an effort to offset any future shortfall in the regions oil demand for its domestic market.
In a recent speech on their website Khalid al Falih who is the Chief Executive Officer of Saudi Aramco (the regions biggest oil production company) stated that Saudi Arabia’s domestic demand for energy is going to increase by more than 9.3 million barrels per day unless the region becomes more efficient in its oil consumption. He also stated that if any savings cannot or will not be made in these consumption levels then the oil available for export will decrease by approximately 7 million barrels per day by 2028 and this will be at the same time that global demand for Saudi Arabia’s oil will continue to sky rocket.
Saudi Aramco are currently planning to boost oil production by building three new oil refineries at Jubail, Yanbu and Jazan and further oil stocks will also be sourced from Port Arthur in the US which is set to increase its output capacity to 1.5 millions barrels per day.
However earlier this year Saudi Arabia failed in its attempts to attract suitable bidders for the Jazan refinery so the project was then assigned to the state owned Aramco. When completed the three new refineries will each have an output capacity of 400,000 barrels a day although it is predicted by 2028 output will need to have increased by 8.3 million barrels a day although it is also estimated that this increase in demand is likely to be halved through adopting new improved energy efficiency methods.Andrew Reid, Staff Writer, Gulf Jobs Market News