Asia top importer of Middle East crude in 2008

Europe emerged as the second largest importer of Middle East oil but its purchases of around 2.6 million bpd are dwarfed by those of Asia, said Noe van Hulst, Secretary-General of the Riyadh-based International Energy Forum (IEF), which groups nearly 100 oil and gas producers and consumers.

In a study presented at a recent energy seminar in the Hague, Netherlands, Hulst estimated the Middle East’s total oil production at around 26.2 million bpd in 2008, nearly 32 per cent of the world’s total crude supply. But the region controlled as high as 60 per cent of the global recoverable oil resources as they were estimated at 754.1 billion barrels at the end of 2008.

“Asia has remained the dominant importer of Middle East oil, receiving nearly 13.3 million bpd in 2008 or around 63 per cent of the region’s total crude exports,” Hulst said. “Europe’s imports stood at 2.6 million bpd, around 19 per cent and those by the United States at about 2.4 million bpd.”

Hulst gave no breakdown of the importers but Japan gets more than two thirds of its crude needs from the Gulf and other Middle Eastern oil producers.

China is also gradually increasing its oil imports from the region due to the rapid growth in its demand and a gradual depletion of its own oil deposits. Other key markets include South Korea, Thailand, Taiwan, Singapore and India.

Most of the crude exports to Asia are supplied by Saudi Arabia, the world’s oil powerhouse, as well as the UAE, Kuwait, Iraq, Oman and Iran.

The UAE alone exports more than one million bpd of crude oil to Japan, while it also supplies crude to China and other Asian and European markets.

Saudi Arabia is also a major oil supplier to Japan, China and the United States, while other supplies to Asia, the US and Europe come from Kuwait and Iran.

Outside the Gulf, Libya and Algeria are key oil and gas suppliers to Europe given their proximity to the continent. Hulst estimated the proven oil reserves of Saudi Arabia at around 264.1 billion barrels at the end of 2008, while those of Iran and Iraq were put at nearly 137.6 billion and 115 billion respectively. The three countries account for nearly 45 per cent of the world’s extractable crude wealth of about 1,258 billion barrels.

In his study, Hulst put the total global oil supply at around 85 million bpd in August, of which nearly 29 million bpd were produced by the 12-nation Organisation of Petroleum Exporting Countries (Opec).

Saudi Arabia pumped nearly 8.2 million bpd, leaving a spare output capacity of 3.4 million bpd, more than half Opec’s total spare capacity of 6.6 million bpd.

Turning to gas, Hulst estimated the world’s proven gas reserves at 185 trillion cubic metres, with Russia controlling the largest resources of 43.3 trillion cubic metres. It was followed by Iran, with 29.6 trillion cubic metres and Qatar, with estimated reserves of nearly 25.5 trillion cubic metres.

He put the world’s gas output at 3,065.6 billion cubic metres in 2008, including 601.7 billion cubic metres by Russia, 116.3 billion cubic metres by Iran and 76.6 billion cubic metres by Qatar.

His figures showed the Middle East’s gas reserves stood at 75.9 trillion cubic metres, nearly 41 per cent of the world’s total gas resources. The region’s gas output stood at about 381 billion cubic metres, around 12 per cent of the world’s production.

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