Saudi Arabia could become oil importer by 2030: Citigroup
Saudi Arabia, the world's largest oil producer at 11.1 million barrels per day and exporter of 7.7 mbpd, could become an oil importer by 2030, a Citigroup report has said.
Dubai: Saudi Arabia, the world's largest oil producer at 11.1 million barrels per day and exporter of 7.7 mbpd, could become an oil importer by 2030, a Citigroup report has said.
The country consumes 25 percent of its production.
According to the report, the country's energy consumption per capita exceeds that of most industrial nations.
Saudi Arabia's oil and its derivatives account for 50 percent of its electricity production, used mostly (less than 50 percent) for residential use. Peak power demand is growing by around 8 percent per year.
"Our analysis shows that if nothing changes Saudi may have no available oil for export by 2030," said the report, adding that it ran the risk of becoming oil importer.
The country already consumes all its gas production, 9.6 billion cubic feet (ft3) per day of natural gas, all of which is entirely consumed domestically.
The country is looking to raise gas production to 15.5 billion ft3/day by 2015, implying a 2011-15 CAGR of 12.7 percent. However, peak power demand is growing at almost 8 percent per annum.
"We believe Saudi Arabia will need to find new sources to meet residential and industrial demand," it said.
As per the report, implications for the global petrochemical market point to potential feedstock restrictions for Saudi petrochemicals given the priority of residential demand.