• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 12 mins Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 18 hours Shale Oil will it self destruct?
  • 1 day Berkeley becomes first U.S. city to ban natural gas in new homes
  • 1 day Iran Captures British Tanker sailing through Straits of Hormuz
  • 11 hours Renewables provided only about 4% of total global energy needs in 2018
  • 2 hours EIA Reports Are Fraudulent : EIA Is Conspiring With Trump To Keep Oil Prices Low
  • 2 days Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 2 days Today in Energy
  • 15 hours Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 3 days Mnuchin Says No Change To U.S. Dollar Policy ‘As of Now’
  • 3 days Populist, But Good: Elizabeth Warren Takes Aim at Private-Equity Funds
  • 2 days LA Solar Power/Storage Contract
  • 2 days Why Natural Gas is Natural
Alt Text

Mexico Confirms Major Tax Cut For PEMEX

Mexican President Lopez Obrador presented…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Saudi Arabia's Solution To Rising U.S. Gas Prices

The first U.S.-bound shipment of reformulated blendstock gasoline produced at a Saudi refinery operated by Aramco and Total is on its way, Reuters reports, citing the official Twitter account of the Aramco-Total joint venture.

The news suggests that with U.S. gas prices at the pump at three-year highs, perhaps this market has proved too potentially lucrative to resist. However, Energy Aspects analyst Robert Campbell noted to Reuters, this also means that Asia is way oversupplied with fuels, so producers need to find alternative destinations for their products.

Aramco and Total have big plans for the Jubail Satorp refinery outside fuel production as well. Earlier this year, the French company signed a US$5-billion contract with Aramco to add a petrochemicals complex to the refinery.

The total cost of the project will be US$9 billion, the partners have estimated, with the complex featuring a 1.5-million-ton ethylene cracker that will feed petrochemical and specialty chemical production facilities in the complex.

The 440,000-bpd Jubail Satorp refinery was built in 2008 and was supposed to produce fuels for the domestic Saudi market to satisfy growing domestic demand. Yet the reforms undertaken by Riyadh, which also include higher prices at the pump, have dented domestic thirst for gasoline. Related: Oil Prices Rise On Supply Outage In Norway

This decline could be reversed now that a ban on women driving was lifted. “There will be more cars on the road,” Oil Minister Khalid al-Falih said last month. "Women will be more empowered and more mobile and I think they will participate more in the job market over time, so I think it’s going to contribute to employment of females in Saudi Arabia. A secondary effect will probably be higher gasoline demand.”

Besides the expected growth in domestic demand, Saudi Arabia is focusing on diversifying its export portfolio away from crude oil and into more value-added oil products.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment
  • Mitch on July 12 2018 said:
    Yet gasoline stocks are at the 5 year high for the USA...
  • Tom on July 12 2018 said:
    Gee, I wonder why gasoline prices are high? I hope Ted Curz is Smiling, he saved the East Coast from using more American Made Ethanol, (that costs 70 cents per gallon less than gasoline), so they can now use more high price Saudi Gasoline.

    Wonder how this will “help” PES.

    “We’re from Washington, and were here to help!”

    Way to go Ted!

    Funny how what goes around - comes around.

    Enjoy your Saudi Gasoline East Coast, I wonder if Ted Cruz is happy now that your fuel dollars are helping the ultra rich Saudi Arabia, and not the American Farmer who feeds you.
  • More Tom on July 12 2018 said:
    The Title of the Article “Saudi Arabia’s Solution to Rising US Gas Prices”

    Is really sad to me.

    You see, we have a solution right here at Home, but No One in the Administration or at the EPA is Listening. Voices of Reason are being drowned out by oil people like Ted Cruz from Texas, John Barrasso from Wyoming and Pat Toomey from Pennsylvania. These people are fighting a simple solution that makes a lot of sense for America.

    The Solution? More Ethanol Blending to extend gasoline supplies and reduce gasoline costs.

    Ethanol is significantly lower in cost than gasoline and has way more octane than the bad stuff refiners use like Benzene. So, if you want cleaner air from a cleaner fuel, with a higher octane at a lower price, then take a step back from the “No Ethanol Pump”, Ted Cruz wants you to use, and step up to - cleaner fuels, blended with American Ethanol – The Clean Fuel, Made Right Here in America, by Real Americans!

    How Simple!

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play