• 3 minutes Why NG falling n crude up?
  • 7 minutes Tesla Battery Day (announcements on technology)
  • 10 minutes America Could Go Fully Electric Right Now
  • 3 hours The China Daily newspaper just did a flash poll of 1600 Chinese Communist Party members. 98% said Biden won the debate.
  • 1 day Taxes. Personal and Corporate. Trump vs Biden "Blarney" Family. Plans vs Records.
  • 3 hours California’s Electric Vehicle Dream Has A Major Problem: No
  • 7 hours Ilhan Omar connected Ballot Harvester in cash-for-ballots scheme
  • 1 day Kalifornistan, CO2, clueless politicians, climate hustle
  • 6 hours Something wicked this way comes
  • 9 hours What is Best for Germany Now?
  • 1 day Debate Night: Trump needs to be concerned about left leaning Chris Wallace , not Biden
  • 2 days BLM organizer plows her car thru Trump supporters. She was arrested and charged with attempted murder
  • 5 hours If Billionaires like Trump Don't Pay Taxes.

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