THE DEMAND FOR OIL PRODUCTS IN SAUDI ARABIA

Journal Article

Aljarrah, Nourah AlYousef and Mohammed A. . 2012

• نوع عمل المنشور: بحث
• رابط المنشور على الويب: http://www.scribd.com/doc/115706316/The-Journal-of-Energy-and-Development-vol-36...
• المجلة \ الصحيفة: THE JOURNAL OF ENERGY AND DEVELOPMENT
• رقم العدد: 2
• رقم الإصدار السنوي: 36
• الصفحات: 179-196

مستخلص المنشور

Saudi Arabia has long been recognized as one of the major global oil producers and exporters. The nation possesses the largest proven crude oil reserves in the world, estimated to be 266.5 billion barrels in 2009.1 The consumption of petro- leum products in Saudi Arabia has increased significantly in the last three decades (1980 to  2010), making  it  one  of  the  fastest growing consumers of  oil  in- ternationally. One possible factor contributing to the high demand for oil products in the country is that these products are sold in the domestic markets at subsidized prices. Other factors include high population growth and increasing demand by the industrial sector. This development in domestic consumption has significant im- plications for global oil supply. With increased domestic consumption, less oil will be available for exports. This paper seeks to estimate income and price elasticities for oil derivatives consumption in Saudi Arabia for the period of 1980 to 2010. Obtaining these elasticities is essential in forecasting the future demand for oil products and for drafting the appropriate plans for capacity building to meet the growing internal demand.