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Saudi Arabia accelerates gas drilling to ease oil demand

Saudi Arabia has accelerated gas drilling to reduce pressure on oil demand from domestic power stations. The Kingdom had 150 active oil rigs in early June 2013, compared to 134 at the start of the year, and this number is expected to reach 200 by late 2013 or early 2014. This growth is linked to the ramping up of oil production at the new Manifa field, which started production in April 2013 and should produce up to 500,000 bbl/d of oil by the end of the year. Saudi Arabia is facing a rising oil demand from its developing refining sector but also from power plants, as electricity consumption is increasing in summer months (air conditioners). The country is turning to gas to fuel power plants and to free more crude for export: crude oil consumption fell from about 800,000 bbl/d in high season in 2012 to about 700,000 bbl/d, as more gas was available. Saudi Arabia aims to maintain at least 2 mb/d of spare oil production capacity to meet unexpected demand from customers.