Saudi Arabia ready to meet crude demand

September 12, 2013

Saudi_Arabia_crudeSeoul, Sep 12: The global oil market is well balanced and top exporter Saudi Arabia ready to supply whatever volume of crude is needed to meet demand, Petroleum and Mineral Resources Minister Ali Al-Naimi said.

Saudi Arabia produced record high volumes of crude in August as it boosted output for the second time in two years to cushion the global oil market from supply disruptions.

Al-Naimi’s comments come after producer group OPEC this week sought to reassure consumers there is sufficient supply to cover a plunge in Libya’s output.

“For the record, oil market fundamentals are good. The market is well balanced,” Al-Naimi said at an industry event.

“I repeat the message that Saudi Arabia is willing and capable for meeting any demand.”

Despite rising Saudi output, benchmark Brent crude prices spiked above $117 a barrel in late August on the virtual shutdown of Libyan oil output and the prospect of US military action against Syria.

Brent traded at $111.67 on Thursday, after falling this week as the threat of a US strike receded, but the market remains volatile on concern diplomatic efforts to avoid military action might fail.

Speculation about international political events is driving oil prices rather than any shortage in supply, Al-Naimi said.

“Our (OPEC) production last month was almost the same as a month before, only 100,000 barrels a day shortage. There is no effect whatsoever...we won’t see a crisis,” said Abdullah Al-Badri, the secretary general of the Organization of the Petroleum Exporting Countries.

Saudi Arabia pumped a record 10.19 million barrels per day in August, an industry source told Reuters.

Rising supply from Saudi helped offset losses from other OPEC members. OPEC output in August fell around 124,000 bpd on the month to 30.23 million bpd, but the group said in its monthly report this week that the market was well supplied.

The US Energy Department expressed similar sentiments on supply, but noted that unplanned outages from OPEC members had reached 2.1 million bpd in August, the highest level recorded since it started tracking outages in January 2009.

Protests at oilfields and terminals in Libya saw output slump to a post-war low of just 150,000 bpd in early September, down from 1.4 million bpd earlier this year.

Al-Badri said oil producers would boost supply if they did see any shortage, but said there was no need to pump more for now.

“If we see there is a shortage in the market, we will act. That’s how we do business,” he said at the same event in Seoul. “The market is very well supplied, we don’t see a shortage.”

Al-Badri, himself from Libya, said he hoped the Libyan government would move swiftly to boost supply.

Libya’s attorney general has issued arrest warrants for the leaders of oil strikers and will act soon against protesters, the country’s prime minister said on Wednesday.

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Agencies
August 2,2020

Dubai, Aug 2: The United Arab Emirates (UAE) announced on Saturday that it has started operations in the first of four reactors at the Barakah nuclear power station - the first nuclear power plant in the Arab world.

Emirates Nuclear Energy Corporation (ENEC), which is building and operating the plant with Korea Electric Power Corporation (KEPCO) said in a press release that its subsidiary Nawah Energy Company "has successfully started up Unit 1 of the Barakah Nuclear Energy Plant, located in the Al Dhafrah Region of Abu Dhabi".

That signals that Unit 1, which had fuel rods loaded in March, has achieved "criticality" - a sustained fission chain reaction.

"The start-up of Unit 1 marks the first time that the reactor safely produces heat, which is used to create steam, turning a turbine to generate electricity," said ENEC.

Barakah, which was originally scheduled to open in 2017, has been dogged by delays and is billions of dollars over budget. It has also raised myriad concerns among nuclear energy veterans who are concerned about the potential risks Barakah could visit upon the Arabian Peninsula, from an environmental catastrophe to a nuclear arms race.

Paul Dorfman, an honorary senior research fellow at the Energy Institute, University College London and founder and chair of the Nuclear Consulting Group, has criticised the Barakah reactors' "cheap and cheerful" design that he says cuts corners on safety.

Dorfman authored a report (PDF) last year detailing key safety features Barakah's reactors lack, such as a "core catcher" to literally stop the core of a reactor from breaching the containment building in the event of a meltdown. The reactors are also missing so-called Generation III Defence-In-Depth reinforcements to the containment building to shield against a radiological release resulting from a missile or fighter jet attack.

Both of these engineering features are standard on new reactors built in Europe, says Dorfman.

There have been at least 13 aerial attacks on nuclear facilities in the Middle East - more than any other region on earth.

The vulnerability of critical infrastructure in the Arabian Peninsula was further laid bare last year after Saudi Arabia's oil facilities at Abqaiq and Khurais were attacked by 18 drones and seven cruise missiles - an assault that temporarily knocked out more than half of the kingdom's oil production.

On Saturday, Dorfman reiterated his concern that there is no regional protocol in place to determine liability should an accident or incident at Barakah result in radioactive contamination spreading from the UAE to its neighbours. 

"Given Barakah has started up, because of all the well-rehearsed nuclear safety and security problems, it may be critically important that the Gulf states collectively evolve a Nuclear Accident Liability Convention, so that if anything does go wrong, victim states may have some sort of redress," Dorfman told Al Jazeera. 

The UAE has substantial oil and gas reserves, but it has made huge investments in developing alternative energy sources, including nuclear and solar.

Experts though have questioned why the UAE - which is bathed in sunlight and wind - has pushed ahead with nuclear energy - a far more expensive and riskier option than renewable energy sources.

When the UAE first announced Barakah in 2009, nuclear power was cheaper than solar and wind. But by 2012 - when the Emirates started breaking ground to build the reactors - solar and wind costs had plummeted dramatically.

Between 2009 and 2019, utility-scale average solar photovoltaic costs fell 89 percent and wind fell 43 percent, while nuclear jumped 26 percent, according to an analysis by the financial advisory and asset manager Lazard.

There are also concerns about the potential for Barakah to foment nuclear proliferation in the Middle East - a region rife with geopolitical fault lines and well-documented history of nuclear secrecy.

The UAE has sought to distance itself from the region's bad behaviour by agreeing not to enrich its own uranium or reprocess spent fuel. It has also signed up to the United Nation's nuclear watchdog's Additional Protocol, significantly enhancing inspection capabilities, and secured a 123 Agreement with the United States that allows bilateral civilian nuclear cooperation.

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Agencies
June 5,2020

Expatriate workers who fail to abide by the coronavirus protocols in Kingdom of Saudi Arabia may face deportation, according to media reports.

“Individuals who fail to abide by preventive measures, including wearing medical or cloth face masks, failing to observe social distancing and refusing to have their temperatures taken, will be fined SR1,000. The fine will be doubled if the violation is repeated. Residents will be deported after paying the fines,” Okaz newspaper said.

Authorities called on people to report offenders by dialling the toll free number 999, except for the holy city of Makka, where the toll free number is 911.

As per the newly-revised Saudi protocols, social gatherings such as mourning or celebration events that take place inside homes, rest houses or farms, are allowed, but attendants should not exceed 50 persons.

The private sector is also required to adhere to precautionary measures: providing their staff with disinfectants and sanitisers, taking the temperatures of both staff and customers at the entrances of shopping malls.

Other measures include sterilising shopping trolleys and baskets after each use, sanitising facilities and surfaces, closing children’s play areas and fitting rooms in shopping malls and ready-wear outlets.

Authorities highlighted the need for all individuals and entities to abide by health safety rules, social-distancing protocol and the new guidelines set for social gatherings.

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News Network
June 23,2020

Riyadh, Jun 23: Authorities in Saudi Arabia have decided to allow a limited number of citizens and residents who are already in the Kingdom to do this year’s Haj.

In a statement on Monday, the Ministry of Haj and Umrah said that in light of the continuation of the coronavirus pandemic and the risks of infections spreading in crowded spaces and large gatherings, it has been decided that Haj for this year (1441 H/ 2020 AD) will be held whereby a very limited number of pilgrims from various nationalities who already reside in Saudi Arabia, would be able to perform it.

“The decision was taken to ensure Haj is performed in a safe manner from a public health perspective while observing all preventative measures and the necessary social distancing protocols to protect human beings from the risks associated with this pandemic and in accordance with the teachings of Islam in preserving the lives of human beings, the statement added.

“The government of the Custodian of the Two Holy Mosques is honored to serve millions of Haj and Umrah pilgrims annually and it confirms that this decision stems from the top priority it accords maintaining the safety of pilgrims on its land until they depart to their home countries.”

“We ask Allah the Almighty to protect all countries from this pandemic and keep all humans protected and safe, the statement said.

Saudi Arabia’s top priority is to always enable Muslim pilgrims to perform Haj and Umrah rites safely and securely and the Kingdom has been keen since the beginning of the pandemic to take all necessary precautionary measures to protect pilgrims, including by suspending the entry of Umrah pilgrims while ensuring the safety of the pilgrims already present at the holy sites, the statement further added.

Commenting on the Haj decision, the Saudi Human Rights Commission said that Saudi Arabia believes in the universal right to health. Limiting Haj not only protects the Kingdom but also many pilgrims and the communities they call home around the world.

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