Oil and gas round-up for 3 March

In the last few days the oil and gas sector in the Middle East, Saudi Aramco has raised oil prices to the US, natural gas demand shows signs of being on the rise, Saudi oil production is down and Kuwait reveals there should be no more power cuts.

Saudi Aramco, the world's largest state owned oil company, raised official selling prices for all crude grades, except heavy, for customers in the US for April and lowered prices on all grades to Europe and most for Asia.

The company increased the formula price of its Arab Light crude to the US the most, raising it by 15 cents a barrel, or 20 percent, to a 60 cent discount off the benchmark Argus Sour Crude Index, Aramco said today in an emailed statement.

The formula price of Arab Medium crude to the US rose 10 cents to US$2.10 a barrel below the Argus index, while the Arab Heavy crude price fell 15 cents to a US$3.30 a barrel discount.

April marks the fourth month Aramco is pricing crude for the US against the ASCI marker, an index of high sulfur oil produced in the Gulf of Mexico. The benchmark replaces a West Texas Intermediate crude price published by Platts, the energy information division of McGraw Hill Cos.

Natural gas demand to rise

Demand for natural gas is forecast to rise by 67 percent by 2030, according to Banagas general manager Dr Shaikh Mohammed bin Khalifa Al Khalifa at an industry conference taking place in Bahrain this week. "Natural gas provides 23 percent of all energy consumed in the world and the demand is growing," he said.

"Gas consumption is projected to rise in most regions over the next three decades, driven chiefly by demand from power generators, according to International Energy Authority (IEA). World primary gas consumption is projected to increase in all regions over the period 2007 to 2030, with the exception of the US, where demand declines fractionally," Arabian Business reported.

"Globally, gas consumption increases by an average of 2.5 percent per year from 2007 to 2030, less rapidly than the three percent of the past three decades," he added.

Saudi oil production down

Saudi Aramco chief executive Khalid al Falih has been reported as saying that Saudi Arabia's oil production is down compared to 2008.

Falih said oil drilling for production has declined, although exploration activities are increasing, Arabian Oil and Gas reported.

Overall drilling for oil this year is expected to remain the same as last year but Aramco would increase gas drilling activities, industry sources said this week.

No more planned power cuts for Kuwait

It has been reported that Kuwait's electricity sector has enough reserves to avoid having to resort to programmed power cuts.

Iyad Al-Falah, assistant undersecretary for technical services at the Ministry of Electricity and Water told the Kuwait Electricity Conference and Exhibition that the country had enough reserves at present and that any programmed cuts would be implemented as a "last solution", according to a report in the Kuwait Times newspaper.

"If people come across announcements about programmed power cuts, it will be caused by maintenance work performed on some generators," Al-Falah is quoted as saying.

 

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