05 Jul '13, 2pm

Drumbeat: July 5, 2013

In the past, Saudi Arabia would have been able to satisfy all of its fuel requirements, including for diesel, through its own means. But as the population has grown, so has the need for fuel to power an ever-growing electricity generation network. According to the Saudi Electricity Regulatory Authority (Ecra), demand has risen by 7 per cent to 10 per cent annually during the past 5 years, one of the highest growth rates in the world. This is projected to continue until 2020. Meanwhile the kingdom's production of diesel has remained relatively flat. So while there is still a vast amount of oil under ground, the country has not been able to extract and refine it fast enough to keep pace with demand. As a result, Saudi Arabia, the kingpin of oil, has had to start importing diesel, among other oil products. At first, the volumes were small. But in line with galloping demand, t...

Full article: http://www.theoildrum.com/node/10072

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