Saudis Plan 50 Per Cent Rise in Refining Capacity Over Five Years
Posted on: Wednesday, 8 February 2006, 09:01 CST
Excerpt from report in English by Saudi news agency SPA website
Houston, Texas, 7 February: [Passage omitted: issued separately] In a key speech before the 4the annual conference of Cambridge Energy Research Associates, currently ongoing in Houston, Texas, USA, [Saudi Minister of Petroleum and Mineral Resources Eng Ali Bin- Ibrahim] Al-Nu'aymi gave definitions for oil ideal market, oil balanced market and said when oil prices drastically increase or drop, they lose their ability to continue, obliging the oil prices to always provide an impetus to rationalize this source of energy without pushing consumers to look for an alternative. [Passage omitted: issued separately]
Regarding Saudi Arabia's future plans in the field of oil, Al- Nu'aymi said our main objective is to remain a stable source of world energy markets.
To this effect, the kingdom is adopting a giant programme to gradually augment the capacity over the four coming years from its current levels of 11 million bpd to 12.5 million bpd, he said, adding that the first step in this way is to add 300,000 bpd of light crude from Haradh field.
In terms of refining, the kingdom is playing its role in alleviating the pressure of the refining problem downstream through investment locally and internationally, the minister said, citing the construction of two new refineries in Jubayl and Yanbu at an estimate refining capacity of 400,000 bpd for each.
Al-Nu'aymi gave several examples of domestic and international refining projects. He cited agreements and studies for joint ventures in the United States of America, China, Japan and South Korea.
He said this would increase our refining capacity by 50 per cent over the coming five years to about 6 million bpd.
This is a clear and ambitious road map and that the investments we are exerting are vital to a stable oil market in future.
Concluding his lecture, Al-Nu'aymi said the oil industry is facing serious challenges but not unsolvable ones. The difficulty of today goes back to the seventies and the eighties when the over flooded market has not provided enough incentives to continue investment in the world energy infrastructure, he said, adding that again the lack of a future vision is peeping out as the future challenge is in the first place an investment problem that has nothing to do with the availability of oil supplies.
He concluded that if enough levels of investments were made available together with the technological inventions, this would be enough to forecast a prosperous future for oil industry.
Source: BBC Monitoring Newsfile
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