Energy

The recent fall in oil prices means that the energy sector’s contribution to Saudi Arabia’s economic growth will be limited in 2015, with expansion to be driven more by the non-oil sector, which is forecast to increase by about 5% in 2015. Saudi Arabia’s crude oil production averaged 9.71m bpd in 2014, compared to 9.63m in 2013 and 9.76m in 2012. However, despite lower oil prices, the Kingdom has increased production in 2015, with its output climbing above 10m bpd to reach 10.3m in March. The country had proven oil reserves of 269.5bn barrels, or 15.8% of the world total, at the end of 2013, and natural gas reserves totalling 290.8trn cu feet, or 4.4% of the global total. In the face depressed prices, and in a bid to expand and diversify its offering, the sector is continuing to invest in new downstream technology, feeding state-owned Saudi Aramco’s transformation from an oil and gas producer into an integrated energy company, with a growing emphasis on oil refining and petrochemicals.