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Page added on November 23, 2011

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Saudi Fuel for Power Plants to Rise 53% by 2017 as Demand Grows

Consumption

Saudi Arabia, the world’s biggest crude exporter, will need 53 percent more fuel to fire its power and desalination plants by 2017 as demand jumps, the head of Water & Electricity Co. said.

The kingdom will use 2.3 million barrels a day of oil equivalent by 2017 for power, compared with 1.5 million barrels last year, Omar al-Ghamdi, chief executive officer of the state- run utility, said in a presentation in Riyadh this week. Power production will increase to 74,529 megawatts, from 55,265 megawatts while daily desalinated water consumption will rise 32 percent to 7.4 million cubic meters, according to Ghamdi.

Saudi Arabia is using more of its 12.5 million barrel-a-day oil capacity at home as it builds new houses and industries that require electricity. The amount of crude burned for power generation has doubled since 2008 and may reach 600,000 barrels a day this year, according to the International Energy Agency. The country may use 8 million barrels of oil equivalent a day by 2035, Khalil al-Shafie, interim president of King Abdullah Petroleum Studies and Research Center said at a conference in the capital.

About half of the country’s power plants are inefficient as they use single-cycle gas turbines, compared with combined-cycle models, which recover and use waste heat to generate additional electricity, Ghamdi said. Bids for new plants are evaluated based on an oil price of less than $4 a barrel, which doesn’t encourage selection of the most efficient or lowest fuel- consuming projects, he said.

Saudi policy makers are seeking to produce enough natural gas to reduce crude use in power plants, cutting generating costs and freeing up more oil for export. State-run Saudi Arabian Oil Co., known as Saudi Aramco, is focusing on exploring for natural gas and developing downstream activities such as refining and petrochemical plants as the need for surplus oil wanes, Chief Executive Officer Khalid al-Falih said Nov. 21.

Bloomberg



2 Comments on "Saudi Fuel for Power Plants to Rise 53% by 2017 as Demand Grows"

  1. BillT on Thu, 24th Nov 2011 3:16 am 

    By 2020, most of the OPEC countries will not be exporting oil, or not much of it. They will ALL be using most of their supply domestically or just not exporting it with their future needs in mind. Smart of them. Bad news for the West.

  2. Kenz300 on Thu, 24th Nov 2011 5:40 am 

    Individuals, business and governments are not prepared for an oil price hike or supply shortage. In the 1970’s there was a short lived embargo that caused price spikes, supply disruptions, long gas lines and rationing of gasoline. We were warned but did not reduce our dependence on oil. The oil and coal companies and OPEC have us backed into a corner.

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