New Delhi: Saudi Arabia, one of the world’s largest oil exporters, is facing a different kind of challenge these days. The country which has been supplying crude oil to the world for a long time, now has to import fuel oil on a large scale to generate electricity.
What do experts think?
This situation seems to be becoming more serious amid the increasing tension in the Middle East and the crisis related to the Strait of Hormuz. Experts believe that due to decline in natural gas production, Saudi Arabia is having to depend on alternative fuels.
According to international reports, gas production in Saudi Arabia has slowed down in recent months. This has had an impact on electricity production, because the country was trying to strengthen the natural gas based energy system for a long time. Due to less availability of gas, the use of fuel oil to generate electricity is increasing rapidly.
According to energy market data, last month Saudi Arabia imported an average of about 3 lakh 60 thousand barrels of fuel oil per day. This figure is said to be about 86 percent more than last year. Experts say that this import may increase further in the coming time, because the demand for electricity reaches its peak during the summer season.
With the increase in temperature in Gulf countries, the use of air conditioners also increases rapidly. Because of this, electricity consumption reaches record levels. According to energy experts, this year the consumption of fuel oil and crude oil for power generation in Saudi Arabia may exceed 1 million barrels per day.
impact on oil production
The increasing tension in the Strait of Hormuz has also affected oil production. According to reports, Saudi Arabia has had to cut oil production, which has affected the production of millions of barrels per day. Along with this, the supply of natural gas produced from crude oil has also reduced.
However, Saudi Arabia has been working towards changes in its energy policy for a long time. The country wants to increase the use of natural gas instead of fuel oil in power generation. Under this scheme, huge investment is being made on Jafurah Gas Field Project. It is counted among the world’s largest gas projects, but it may take several years for it to start working at its full capacity.
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