Sample Essay

In order to clear petroleum for export, Saudi Arabia keeps on exploring natural gas resources to meet domestic requirements. Oil and Gas Journal reports that Saudi Arabia has 258 trillion cubic feet (Tcf) proven natural gas reserves. (Oil and gas journal)

Canada on the contrary had 57.9 trillion cubic feet (Tcf) of proven natural gas reserves in January 2009 which is approximately one fifth of Saudi’s gas reserves. (EIA)

However, the greater part of the gas fields in Saudi Arabia are associated with petroleum deposits, or found in the same fields as crude oil, and plans to increase production of this type of gas remain linked to an increase in oil production. Saudi Arabia’s proven natural gas reserves are consistent with 57 percent of associated gas at the giant onshore Ghawar field and the offshore Safaniya field. The Ghawar oil field is a larger natural gas reserve than other fields. It accounts for about one-third of Saudi Arabia’s proven natural gas reserves.

Brisk reserve expansion is necessary for Saudi Arabia’s plans to stimulate the growth of the petrochemical sector, as well as for electricity generation and for water desalination.

According to OPEC and other sources, natural gas production (estimated at 2.7 Tcf in 2007) stays limited, as soaring costs of production, exploration, dispensation and distribution of gas have constricted the supply, while an expected 13 to 14 percent of total production is lost to venting, flaring, reinjection and natural processes. Saudi Arabia has no net imports or exports of natural gas. (EIA)

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