Saudi Aramco 2008 Review

“Saudi Aramco’s prudent management of the world’s largest petroleum reserves and fourth-largest gas reserves was showcased this anniversary year through the company’s ongoing, record capital program to expand oil and gas production capacity, a highlight of which was the rapid progress made on the Khurais development program. With 1.2 million barrels per day of production capacity, Khurais is the single largest integrated oil project not only in company history but in the history of the global oil industry.”

In his message, Khalid A. Al-Falih, Saudi Aramco president and chief executive officer said: “The year 2008 was marked by turbulence in the global economy and by volatility in the energy sector. In these uncertain times, Saudi Aramco continued to be a rock of stability.

“From the concession signing in 1933 that ultimately led to the discovery and production of the world’s largest proven conventional oil reserves to our present-day industry leadership, Saudi Aramco has continually raised the bar for operational excellence, responsiveness and reliability, innovation and stewardship,” he added.

“Our activities reflected Saudi Aramco’s unrivalled position as the world’s most reliable energy provider. This Review showcases our continued success in exploration, production, refining and new forays into petrochemicals.” 

The Review notes Saudi Aramco’s role as a force for market stability and a critical contributor to sustained economic growth and development, given the impact of its petroleum exports on markets in both the East and the West. The company is the number one supplier of crude oil to major economies such as China, Japan, Republic of Korea and India, in addition to being a major supplier to the world’s biggest crude oil consumer and its single largest economy, the United States.

To meet future supply challenges, Saudi Aramco has embarked on the largest capital expenditure program in its history. Part of the company’s project portfolio is the addition of significant oil production capacity and gas processing capacity. Some of this crude oil production capacity will be utilised to offset the natural decline of oil fields, while the rest will be employed to expand production capacity to 12 million bpd in 2009.

Key figures

Crude oil production

Total annual production: 3.2 billion barrels
Average daily production: 8.9 million barrels per day
 
Recoverable reserves

Crude oil and condensate: 259.9 billion barrels
Gas (dissolved, associated and non-associated): 263 trillion standard cubic feet
 
NGL production from hydrocarbon gases
402.2 million barrels
 
Domestic refining capacities (in thousands of barrels per day)

Ras Tanura: 550
Riyadh: 122
Jiddah: 85
Yanbu’: 237
Petro Rabigh: 385 (Saudi Aramco ownership 37.5%)
SAMREF – Yanbu’: 400 (Saudi Aramco ownership 50%)
SASREF – Jubail: 305 (Saudi Aramco ownership 50%)
Total domestic refining capacity (including 50% share of SAMREF and SASREF and 37.5% share of Petro Rabigh): 1.49 million barrels per day
 
2008 exports by region

Far East:
Crude: 52.7 %
Refined products: 53.4 %
NGL: 45.6 %
Europe:

Crude: 5.2%
Refined products: 8.2%
NGL: 1.3%

Mediterranean:
Crude: 7.0%
Refined products: 7.4%
NGL: 5.4%

U.S.:
Crude: 20%
Refined products: 1.4%
NGL: 1.2%

Other:
Crude: 15.1%
Refined products: 29.6%
NGL: 46.5%
*includes sales on behalf of SAMREF & SASREF
 
Estimated Worldwide Crude Oil and Gas Reserves as of Jan. 1, 2009

Conventional Crude Oil Reserves (billion barrels)
Source: Oil & Gas Journal

Saudi Arabia*: 259.9
Iran: 138.4
Iraq: 115
Kuwait: 101.5
UAE: 97.8
Venezuela: 87
Russia: 60
*Source: Saudi Aramco
 
Natural Gas Reserves (trillion cubic feet)
Source: Oil & Gas Journal

Russia: 1,680
Iran: 974
Qatar: 910.5
Saudi Arabia*: 263
UAE: 214.4
United States: 204.3
Nigeria: 181.9

*Source: Saudi Aramco