As Saudis Keep Pumping, Thirst for Domestic Oil Swells

Wall Street Journal ^ | July 2, 2015 | SUMMER SAID and AHMED AL OMRAN

[thackney]

Saudi Arabia is poised to break records for oil production this summer, analysts said, as domestic-energy needs soar during its scorching summer and the holy month of Ramadan and threaten its ability to ramp up exports.

Saudi Arabia has said it produced a near-record 10.3 million barrels a day in May, a mark that industry observers said could increase to 11 million barrels this summer as air-conditioning use increases with temperatures reaching 110 degrees Fahrenheit. The country has the ability to produce 12.3 million barrels a day for 90 days, but it has never pumped this much. Saudi output averaged 9.22 million barrels a day from 2006 to 2014, according to the U.S. Energy Information Administration. Most of its oil is exported.

For the past three years, Saudi domestic energy demand has been rising by about 8% due to an expanding population and new construction and large-scale projects. More than 25% of the country’s crude is consumed domestically by cars, planes, homes and businesses, a figure that rises in the summer and is almost double what the kingdom used in the early part of the last decade. The kingdom’s population has increased 17% since 2005, faster than most developed countries.

At this pace, the kingdom would have to start importing oil by 2030, Citigroup Inc. has predicted, a once unthinkable prospect for the linchpin of the world’s oil market. Khalid al-Falih, the current chairman and former chief executive of the kingdom’s state-owned oil company, Saudi Arabian Oil Co., known as Saudi Aramco, said in 2011 that, if left unchecked, domestic energy consumption would rise to 8.2 million barrels of oil a day by 2030.

Other analysts are doubtful Saudi Arabia would need to import oil....

[Pearls Before Swine]

According to web references, this article is a bit premature—because 2030 is 15 years away. So, they are using roughly 3 million barrels/day today. In order to approach their current output, they’d have to triple that usage, which is what 8% growth compounded for 15 years would do. It’s hard to believe they’d use THAT much, as their population is only 30 million. In fact, they’re already using more per capita than the US—we’re at roughly 20 million barrels per day, but our population is 300 million.

[hoosierham]

We could be using less oil if only we had more safe nuclear power,didn’t allow envirowhackos to dictate destruction of hydro plants,didn’t waste billions of dollars on inefficient wind farms and more billions of dollars on poorly designed and installed lights that send glare into drivers’ eyes and a great portion of the light into space benefiting no one.

Integrated appliance could save a lot if done right;isn’t it ridiculous to use electric to heat cold water while at the same time using electric to throw heat out of the building ?

[SunkenCiv]

Thanks thackney. This may explain the Saudis' renewed interest in nuclear plants for electrical power production.