Saudi Arabia has its eyes set on becoming the No. 3 petrochemicals producer by 2015, said Minister of Petroleum and Mineral Resources Ali Al-Naimi at the Arab Economic Forum in Beirut yesterday. The Kingdom is currently ranked No. 10 in the production of petroleum derivatives.
According to information available here, Al-Naimi said the Kingdom’s petrochemical production has grown from two million tons in 1970, when this sector was born with the establishment of the Master Gas System, the Royal Commission for Jubail and Yanbu and Saudi Basic Industries Corp. (SABIC). Today the country produces close to 60 million tons. “This is ample testimony that the Kingdom has achieved impressive growth in this industry over the past 30 years ... with a share of about 8 percent of global production,” said the minister. He added that the Kingdom is expected to hit the 100-million-ton mark by 2015 with an annual growth rate of about 12 percent.
“This would make the Kingdom the third largest petrochemicals producer in the world,” Al-Naimi said.
In the early 1980s, investments in this sector were less than $500 million. This has grown to $20 billion in 2000, according to the minister.
“We can safely say that the increase in investments between 2005 and 2012 will total $70 billion,” he added.
The Kingdom owns massive reserves of oil, natural gas and mining ores, such as bauxite, phosphate and others. Saudi Arabia’s petroleum reserves amount to about 264 billion barrels, or one quarter of the world’s proven reserves.
“The Kingdom will continue to be the largest and the most important oil producer and exporter during the 21st century, just as it has been the past half-century,” said the minister.
As for gas, the Kingdom boasts of reserves amounting to 250 trillion cubic feet, the fourth largest in the world. However, the exploration activities undertaken by Saudi Aramco and the international companies operating in the Rub Al-Khali area hold out the promise of the discovery of additional gas volumes which will increase both the Kingdom’s reserves and its production.
Al-Naimi also told a gathering organized by Al-Iktissad Wal-Aamal magazine that Saudi Arabia was working with other oil producing countries both inside and outside OPEC (Organization of Petroleum Exporting Countries) to achieve market stabilization, despite the many massive jolts which have occurred on both the supply and demand sides of ledger.
“This stability has realized a fair income level for oil producers and maintained the status of oil as a base source of energy in the face of higher global economic growth, especially in the economies of developing countries,” he said.
As Saudi Arabia embarked on a major economic diversification program, Al-Naimi said the Kingdom’s economic reforms will be sustained with the same momentum and level of commitment, and will be further consolidated. He said: “The future of the Saudi economy is indeed bright and promising. The economic growth is expected to grow at a rate higher than the average global economic growth rate.”
Al-Naimi, who also received a memento at the forum for his pioneering role in developing the Kingdom’s oil sector, added: “We in the oil, gas and mining sectors will continue to focus on the domestic market in terms of attracting foreign investment; the creation of mega, medium and small projects; encouragement of production efficiency; enhancing the spirit of competition; and focusing on national competencies, particularly those that add significant value to the economy.”
He added: “As the largest economy in the region, the potent economic growth of Saudi Arabia will be reflected in a positive way on most of the Arab countries. Without a doubt, greater Arab economic cooperation will boost quality of life, raise incomes, and promote social and educational development.”
Source : www.arabnews.com
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