Energy

Saudi Arabia has boosted oil production to near record highs, reaching levels of output and exports not seen since before the global economic crisis. According to official data issued in mid-August by the Joint Organisation Data Initiative (JODI), Saudi Arabia increased its crude oil production from 8.89m barrels per day (bpd) in May to 9.76m bpd in June, with overseas shipments averaging 7.38m bpd, the highest since October 2008.

With a recent increase in oil production and global crude prices above $100 per barrel, Kuwait is expected to run a substantial fiscal surplus in 2011 thanks to its hydrocarbons export revenues. But the country is looking beyond the market for crude oil and investing in refineries both at home and abroad.

With significant recent gas discoveries off the coast of Sabah, excitement about the country’s future as an oil and gas producer is growing. In the meantime, the national oil giant Petronas is moving forward with its plans to ensure Sabahans receive the necessary training to meet the need for skilled workers in the oil and gas fields.

With local refineries unable to meet domestic demand, Nigeria – Africa’s largest exporter of crude oil – currently imports more than 70% of its petroleum needs. However, this could change if plans to build three new refineries are realised.

New offshore natural gas deposits are set to vastly expand the Philippines’ hydrocarbons reserves at a time when demand at home is on the increase. The country has proven natural gas reserves of 108.7bn cu metres, ranking it 51st in the world, with annual production of around 3bn cu metres. While this is sufficient to meet current demand, with the economy expanding and demand for electricity on the rise, calls on domestic gas reserves are expected to increase in the coming years.

State-controlled natural gas distributor Perusahaan Gas Negara (PGN) has objected to calls for a potential price increase from its upstream suppliers. At the same time, the distributor, facing rising domestic demand and an irregular supply, is considering new sources of natural gas, including the purchase of blocks in North Sumatra.