KSA's Newest Investments: 3 Refinieries Capable Of 10% Of Output, Dedicated To Heavy Crude
DUBAI: Saudi Arabia’s drive to build new refineries means its maximum capacity to export crude, the big gun it aims at other producers wanting higher oil prices, is set to decline over the next five years.
Major oil importers are not alarmed, as actual Saudi crude exports are well below their maximum and because more US and Iraqi crude will become available. But India’s refining industry has reason to worry about the emergence of a rival processing more than a million barrels a day.
The three new refineries, each able to process 400,000 barrels per day (bpd) of mainly heavy crude, could consume nearly a tenth of the kingdom’s current officially declared production capacity of 12.5 million bpd when they are all fully operational in 2017.
Saudi Arabia has so far used its unique ability to produce much more crude than needed to counter price hawks led by Iran in the Organization of the Petroleum Exporting Countries and keep prices at levels that do not over burden the world economy.
Now the world’s largest crude exporter has invested tens of billions of dollars raising refinery capacity to maximize profits by selling more products while cutting a fuel import bill that has ballooned since 2007 as domestic demand grew.
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Ed. - emphasis added.
http://arabnews.com/new-saudi-refineries-reduce-crude-oil-export-cushion