|
Saudi Arabia
Crude Oil Reserves and Production Capacity
Saudi Arabia has been described as the world "mother lode" of
oil and gas reserves. Estimates for 1990 placed total oil reserves
of the kingdom at 261 billion barrels. Saudi Aramco controlled
all the reserves within the country's borders with the exception
of reserves in the Divided Zone, which were controlled by Getty
Oil Company and the Arabian Oil Company. Total oil reserves have
risen steadily since oil was discovered in 1938. During the 1970s
and 1980s, estimates of total oil reserves grew by nearly 91 percent
from 137 billion barrels in 1972 (see table 6, Appendix). The
comprehensive reassessment of existing reserves boosted Saudi
Arabia's share of world reserves to 25.8 percent. At 1992 production
levels, these oil reserves would allow oil production for almost
eight-four years.
Until the mid-1980s, all the oil that had been discovered had
been found in the Eastern Province. Aramco had found forty-seven
oil fields, including some during the 1970s in the Rub al Khali.
The world's largest oil field, Al Ghawar, located in the Al Ahsa
region of the Eastern Province, is 250 kilometers long and 35
kilometers wide at its greatest extent. The field is so vast that
names have been given to separate subsections such as Ain Dar,
Shadqam, Al Hawiyah, Al Uthmaniyah, and Harad. Discovered in 1948,
the field began output in 1951. By 1990 Al Ghawar had 219 flowing
wells. Saudi Arabia also possessed the world's largest offshore
field, As Saffaniyah, located in the gulf near Kuwait and the
Divided Zone. As Saffaniyah was discovered in 1951, began output
in 1957, and by 1990 had 223 flowing wells. Of the four fields
discovered before Al Ghawar--Ad Dammam, Abu Hadriyah, Abqaiq (also
seen as Buqayq), and Al Qatif--only Abqaiq and Al Qatif were still
producing in 1990. Abqaiq had forty-seven flowing wells. The major
producing fields discovered after Al Ghawar, mainly in the 1960s
and early 1970s, are offshore and include Manifah, Abu Safah,
Al Barri, Az Zuluf, Al Marjan, and Al Khafji in the Divided Zone
.Saudi Arabia had a total of 789 flowing wells during 1990, up
from 555 producing wells in 1983.
The quality of crude oil flowing from these wells is based on
density (measured by gravity standards established by the American
Petroleum Institute--API) and the amount of sulfur and wax it
contains. Light crude oil is generally more desirable and commands
a higher price because it yields more high-value products such
as gasoline and jet fuel. Several Saudi fields, including those
in the Divided Zone, contain heavier grades by international standards.
Al Ghawar field produces crude ranging from API gravity 33 degrees
to 40 degrees, which is considered light crude oil in the kingdom
but is generally heavier than most international light crude oils.
As Saffaniyah produces heavy crude oil with API gravity ranging
from 27 degrees to 32 degrees.
The historical production pattern until the early 1980s contained
greater proportions of light and very light crude oils. By the
mid-1980s, government policy sought to adjust output between heavy
and light crude oils to reflect actual users of each, so that
the kingdom would not exhaust its supply of light crude oils.
Estimates for 1991 showed that this balance was not achieved,
however; Extra Light (from Al Barri field) and Arab Light (crudes
from Abqaiq, Al Ghawar, Abu Hadriyah, Al Qatif, and others) recorded
production levels close to 70 percent of total output of 8.2 million
bpd, whereas Arab Medium (from Az Zuluf, Al Marjan, Al Kharsaniyah,
and other fields) and Arab Heavy (from As Saffaniyah, Manifah,
and other fields) production levels approached 11 percent and
19 percent, respectively. In the early 1990s, the consensus was
that after capacity was expanded, the split between light and
heavy grades would shift to 10 percent more heavy crude oils,
despite recent discoveries of very light grades south of Riyadh.
During the 1980s, technological developments in refining narrowed
the differentials between light and heavy crudes. Therefore, the
traditional price disadvantage that the Saudis faced was steadily
being erased because of the more sophisticated refineries being
brought on line.
Saudi crude oils also contain high sulfur levels. Crude from
Al Ghawar has sulfur content ranging from about 1.9 percent to
close to 2.2 percent by weight, which is generally considered
high. As Saffaniyah crude's sulfur content is even higher at above
2.9 percent by weight. Sulfur compounds are undesirable, often
contaminating crude oils and corroding processing facilities.
Data as of December 1992
|
