• 287 days Will The ECB Continue To Hike Rates?
  • 288 days Forbes: Aramco Remains Largest Company In The Middle East
  • 289 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 689 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 699 days Big Tech Disappoints Investors on Earnings Calls
  • 700 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 702 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 706 days Crypto Investors Won Big In 2021
  • 706 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 707 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 709 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 713 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 714 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 716 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

How Millennials Are Reshaping Real Estate

How Millennials Are Reshaping Real Estate

The real estate market is…

Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  1. Home
  2. Markets
  3. Other

Middle East Producers See More Heavy Oil in their Future

Middle East oil countries should increase production of heavy oil as oil prices remain higher and improved technology makes it easier, those attending an industry conference in Bahrain were told.

Bahrain's oil minister, Abdulhussain Mirza, told the Heavy Oil World MENA conference that heavy oil reserves in the region were estimated at 1 trillion barrels, or 28% of total world reserves, but historically accounted for little more than 10% of production.

"The vast reserve demonstrates the importance of heavy oil as a future energy source, one that cannot be overlooked and, therefore, companies that position themselves early in the heavy oil business are likely to win the game," Mirza said, according to local news reports.

Bahrain recently signed an agreement with Mubadala Development, an Abu Dhabi state-owned firm, and Occidental Petroleum of the U.S., to boost heavy oil production in the Awali field, one of the oldest in the region and Bahrain's only oilfield.

Using advanced oil recovery technology and developing the heavy oil sectors of the field could double or triple its production from 32,000 barrels a day currently, Mirza said.

Heavy crude oil is distinguished from light crude oil because it does not flow as easily due to a higher specific gravity. Oil sands and natural bitumen, which don't flow at all, are also included in this definition.

Production and refining of heavy crude costs more than recovering and processing light crude. Production of heavy oil from oil sands in Canada's Alberta province has an estimated break-even point of $35 a barrel, Mirza noted. But Bahrain's heavy oil could be recovered at a cost of between $8 and $9 a barrel, he said.

Oil prices in recent weeks have fluctuated in a range of $70 to $80 a barrel, which OPEC officials have declared an ideal range.

"Heavy oil will be a savior to the ever-increasing demand for fossil fuels from the developing nations," Mirza was quoted as saying.

The national oil companies of Bahrain, Kuwait and Saudi Arabia were represented at the Bahrain conference, as well as multinational oil giants Total and Chevron. Saudi Arabia plans to develop heavy crude deposits and to refine the oil for domestic use, saving more of the light crude for export.

Source: http://oilprice.com/Energy/Crude-Oil/Middle-East-producers-see-more-heavy-oil-in-their-future.html

By Darrell Delamaide for Oilprice.com who offer detailed analysis on Oil, alternative Energy, Commodities, Economics and Geopolitics. They also provide free Geopolitical intelligence to help investors gain a greater understanding of world events and the impact they have on certain regions and sectors. Visit: http://www.oilprice.com.

 

Back to homepage

Leave a comment

Leave a comment