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FINANCIAL NEWS
Saudi Arabia sets new record in crude burning this summer
19 Sep 2012
(MENAFN) Official data showed that Saudi Arabia has reached a record monthly consumption of oil in June and July, Reuters reported.
This is the contrary to the top crude producer’s plan to lower its summer oil burning this year and rely more on natural gas.
According to the Joint Oil Data Initiative (JODI), the Gulf Kingdom burned an average of 743,500 barrels per day (bpd) of crude in June and July, up 82,000 bpd from a year earlier. This was largely to generate electricity to keep the population cool.
Saudi Arabia also burnt an average of 778,000 bpd in June, 162,000 bpd more than in June 2011.
In March, Saudi Oil Minister Ali Al-Naimi said that Saudi Aramco would boost gas supplies for power plants this summer, with an extra 90,000 barrels of oil equivalent possibly available.
Saudi Arabia is considered to be the largest crude oil-for-power generation consumer, with most countries outside the Middle East cutting back oil-fired power generation long ago in favor of gas, nuclear and renewable energy sources.
The country’s consumption of oil for power rose by an implied 260 percent from 2004 to 2010, official figures show.
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