
Image From ..Saudi Aramco
The news about Saudi Arabia's planned $200 billion investment in refining and exploration for oil and gas provides a stark contrast to the attitude we see in the U.S. of opposition to energy management and growth.
Whether it's natural gas, oil, nuclear, coal...you name it, the opposition to it brings capital improvement to a crawl. Even for major projects like the proposed Keystone Pipeline, whic would be built entirely by private investment, --no public funds-- politics gets in the way (yielding to opposition) with the State Dept. delivering its own obstruction; sitting on its hands and postponing decisions for political purposes.
Saudi Arabia, on the other hand, is taking decisive, long-term steps toward a more secure future. Saudi Aramco, the world's largest exporter of crude oil is expanding its refining and petrochemical production. The company plans to boost its global refining capacity to 8 million barrels per day in 10 years.
And the Saudis are exploring diverse energy options including unconventional gas, shale and 'tight gas'. Saudi Aramco said it will invest $90 billion in the next five years to increase refining capacity by 50 percent to 6 million barrels per day.
Included in their plans will be creation of refineries in China and Saudi Aramco expects to reach final tems on a plant with the China National Petroleum Corp. (CNPZ), the nation's largest energy producer.
Saudi Aramco's CEO, Khalid al-Falih said "It took us nine years to finalize the terms with Sinopec (China's nationalized energy producer)but I'm sure we will have a very good project with a very good parter."
Aramco and Sinopec agreed last week to develop a refinery in the Saudi city of Yanbu that will process 400,000 barrels per day. The projected cost for that refinery is $10 billion and it is expected to be operational by 2014.
According to Breitbart.com, the deal highlights "China's growing role as an infrastructure developer in the oil rich kingdom." The Saudi's will own 62.5 percent; China 37.5 percent.
In Indonesia Aramco plans to develop a refinery with state-run PT Pertamina (PERT). The two companies are discussing a 300,000 barrel a day refinery ($8.8 billion)in East Java that could be operational by 2018.
Saudi Aramco is also scheduled to meet this month with Japan's Sumitomo Chemical to discuss planned expansion for their jointly owned PetroRabigh refinery in Saudi Arabia. The two companies missed their yer-end target date to decide on investing from $6 billion to $8 billion to enlarge the refinery there.
Saudi Aramco is also considering expanding the Ras Tenura refinery, Saudi Arabia's largest with a capacity of 550,000 barrels per day.