Saudi Arabia Intends 1 mmbbl/d Reduction in Domestic Hydrocarbons Consumption

Saudi Arabia Intends 1 mmbbl/d Reduction in Domestic Hydrocarbons Consumption

Saudi Arabia Energy Minister, Prince Abdulaziz bin Salman has recently announced that the kingdom targets slashing consumption of domestic liquid hydrocarbons by one million barrels per day (mmbbl/d) to be better used and monetized, S&P Global reported.

In 2019, Saudi Arabia was consuming approximately 491,000 barrels per day (bbl/d) of oil for industrial purposes and power generation. The reduction could help Saudi Aramco to boost its long-term spare capacity up to two millions barrels per day (mmbbl/d). 

“We are launching a sustainability program to try to find ways to use hydrocarbons in different ways, especially in terms of materials, which will not be impacting or affecting the environment in any way,” the Saudi Minister stated during the Berlin Energy Transition Dialogue.

According to a research paper published by the King Abdullah Petroleum Studies and Research Centre in 2018,   consumption of domestic gasoline and electricity prices in the kingdom are expected to hike, which in turn could boost export capacity by over 75,000 bbl/d, and cut carbon emissions by 97 million tons per year (mmt/y).

 

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