IMPACT OF CRUDE-OIL PRODUCTION ON THE PETROCHEMICAL INDUSTRY IN SAUDI-ARABIA

The gas input into the petrochemical industry in Saudi Arabia involves mainly methane and ethane as fuels and feedstocks. These gases are produced from the separation of natural gas into its components. The majority of the natural gas produced in Saudi Arabia is as an associated gas. But the associated-gas production is heavily tied to crude-oil production. The impacts of various oil-production levels on the availability of methane and ethane have been studied by using a linear-programming model. With the existing demand for methane (1.62x10(9) SCFPD) and ethane (2.87x10(8) SCFPD), the minimum oil production is four million barrels per day. At this level of production, the methane demand is satisfied while there is an excess of ethane. But by the substitution of the excess ethane for a part of the methane demand, the minimum oil production could be reduced to three million barrels per day. Finally, by utilizing the maximum existing capacity of unassociated gas (1x10(9) SCFPD) from gas wells, the minimum oil production level can be reduced to one and one half million barrels per day. With more exploration and discoveries of Khuff gas, natural gas production will become even less dependent on oil production.