OIL & GAS, investments
Global demand for refined oil products is expected to remain strong, particularly in Asia and the GCC. The lack of new refinery projects in the 1990s and sharply higher refinery utilization rates have recently offered refiners some of the highest margins experienced over the last twenty years. Refinery utilization rates are forecast to rise above 86% by 2010 and demand for refined product is expected to reach 93 million (bpd) by 2010 and to 188 million (bpd) by 2030.
Good Reasons To Invest in Crude Oil Refining
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Strategic geographic location between markets in the USA, Asia, and Europe
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Strong domestic, regional, and Asian demand for refined products
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Very high security of supplies for crude oil
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Competitively priced feedstock and energy
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Deregulating markets
The refining sector in the Kingdom will continue to offer excellent opportunities and high returns for its investors. The Kingdom’s strategic, geographic location between key export markets such as Europe, the USA, and Asia combined with its secure access to existing export infrastructure for crude oil and oil products, will allow it to serve all destinations efficiently and enable investors to take advantage of price differences in markets.
Investment Opportunities in Crude Oil Refining
Adopt appropriate refinery configuration to exploit key export markets
Transfer skills from collaboration with local partners to build new or to expand existing refineries
The two new export refineries planned by Saudi Aramco, in conjunction with Total and Conoco, together with another planned by NAMA, will commit more than US$18 billion to the Kingdom. In addition, Saudi Aramco is also planning a program of several expansions and upgrades to its existing refineries. These projects will present major opportunities for these companies, their financial backers and a wide range of support service companies such as those operating in:
- Engineering
- Construction
- Health and Safety
- Information Technology
- Operations
- Maintenance
