• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 10 hours Simple question: What is the expected impact in electricity Demand when EV deployment exceeds 10%
  • 8 hours America's pandemic dead deserve accountability after Birx disclosure
  • 1 day Biden about to face first real test. Russia building up military on Ukraine border.
  • 2 days Trump punches back at Fauci and Birx's revisionist history (aka lies)
  • 4 days The coming Cyber Attack
  • 22 hours U.S. and Chinese investors to buy Saudi pipelines , $10 Billion deal.
  • 1 day Create a new law "Postericide" to prosecute and imprison Climate Change "Deniers"
  • 2 days New Chinese Coal Plants Equal All those in U.S.A
  • 3 days Goldman Betting on Cryptocurrencies
  • 14 hours NG spot prices hit triple digits for weekend delivery
  • 5 days New German Study Shocks Electric Cars: “Considerably” Worse For Climate Than Diesel Cars, Up To 25% More CO2
  • 6 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 6 days Forecasts for Natural Gas

Saudi Arabia Set To Burn Record Crude Oil Volumes For Electricity

Saudi Arabia could use this summer record amounts of crude oil for producing electricity as more Saudis would stay at home rather than travel on vacation abroad because of the pandemic, according to Bloomberg estimates of analysts.

Saudi Arabia burns crude oil for power generation and this summer it could be on track to burn record volumes of crude to keep air conditioning on while temperatures outside could reach 120 degrees Fahrenheit.

The burning of more oil is a setback from earlier Saudi plans to reduce its reliance on crude for electricity generation. Saudi Arabia also has less natural gas to use for power generation this summer because the ongoing OPEC+ oil production cuts affect the associated natural gas production at its oil fields.

The Saudi choice for power generation this summer is either importing more natural gas or burning more crude oil, Carole Nakhle, chief executive officer at London-based consulting firm Crystol Energy, told Bloomberg.

“The second option is more likely and easier since the region has been doing this for years and decades and there is plenty of oil around today,” Nakhle said.

The higher crude-for-power-generation will absorb the extra crude oil production from Saudi Arabia after the OPEC+ cuts are eased from August 1, Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, said earlier this month.

Despite the higher production resulting from the eased cuts, the world’s largest oil exporter said last week that it would keep its crude oil exports in August at the levels from July.

“I can tell you that in the Kingdom Saudi Arabia, due to the increase in demand from utilities and other sectors, as lockdowns ease, we estimate approximately 500,000 barrels per day of extra demand in August. So, despite a higher production target in August, there will be no change in our exports,” Prince Abdulaziz bin Salman said last week at the Joint Ministerial Monitoring Committee (JMMC) meeting.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News