Saudi Arabia Tops Hydrocarbon Producers in Oil, Gas Emissions

Mining is one of the sectors targeted to attract investments and diversify sources of income in Saudi Arabia (Asharq Al-Awsat)
Mining is one of the sectors targeted to attract investments and diversify sources of income in Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia Tops Hydrocarbon Producers in Oil, Gas Emissions

Mining is one of the sectors targeted to attract investments and diversify sources of income in Saudi Arabia (Asharq Al-Awsat)
Mining is one of the sectors targeted to attract investments and diversify sources of income in Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia has been able to score higher than other hydrocarbon producers in many indicators related to the emissions performance of the oil and gas sector.

Over the past year, the six Gulf Cooperation Council (GCC) countries have updated their medium-term greenhouse gas emissions targets by submitting revised nationally determined contributions (NDCs) under the Paris Agreement.

The Kingdom, the UAE, and Bahrain announced their targets for zero-emissions neutrality in the middle of the century.

A recent study issued by the King Abdullah Petroleum Studies and Research Center (KAPSARC) focused on how the GCC countries manage their energy and emissions and how they are in a position to advance towards circular economies of carbon or zero neutrality.

The study indicated that the first version of the Circular Carbon Economy Index (CCE) showed that the GCC countries’ ranks range from the twelfth to the twenty-seventh, with the UAE ranking the highest and Oman the lowest.

The study found that although each country will have its unique pathway to net-zero and CCEs, the GCC countries share several structural and other similarities, which create opportunities for both sharing lessons and cooperating on the road to net-zero emissions.

The paper found that, although as a group, the GCC countries outperform their non-OECD peers and neighbors in the Middle East and Africa region in most areas measured by the CCE Index, they should undertake further efforts if they wish to improve their position in the global CCE transition.

A Fellow II in the Climate and Sustainability Program, and a co-author of the paper, Mari Luomi, said that using the circular carbon economy concept can help countries increase their ambition in their climate goals and targeted actions.

Luomi noted that it broadens the scope of the available technology options.

She indicated that the circular carbon economy in the Gulf region could help achieve buy-ins from many industries with limited and cost-effective options to decarbonize without using fossil fuels.

Fatih Yilmaz, another co-author, noted that a critical enabler of circular carbon economies, the GCC countries’ average is higher than their non-industrialized peers but lower than those of the world’s top 20 oil producers.

The third co-author, Thamir al-Shehri, stressed that Saudi Arabia achieves higher scores than other hydrocarbon producers in many indicators of the oil and gas sector’s emissions performance.

The Kingdom’s exports of hydrocarbons will enjoy a competitive advantage as the country pursues full circularity, or net-zero emissions, according to Shehri.

Meanwhile, Saudi Industrial Production Index (IPI) increased by 17.7 percent compared to July 2021 in light of favorable growth rates due to the high production in mining & quarrying, manufacturing activity, and electricity and gas supply.

The General Authority for Statistics (GASTAT) issued Sunday its monthly bulletin for July, showing that mining and quarrying grew by 14.1 percent compared to July 2021 as Saudi Arabia increased its oil production to its highest level by more than 10 million barrels per day in July 2022.

The manufacturing activity increased by 32.6 percent compared to the same month of the previous year. The electricity and gas supplies rose by 5 percent.

Compared to June 2022, the overall IPI increased by 1.6 percent mining and quarrying showed a month-on-month growth rate of 1.6 percent, while the manufacturing sector grew 0.3 percent, and electricity and gas supplies saw a 14.6 rise.

The impact of growth in the electricity and gas supplies index on the IPI was limited due to its small weight in the index.

The General Authority for Statistics issues several statistical products related to the industry, including the Industrial Production Index (IPI).

The IPI is an economic indicator that reflects the relative changes in the volume of industrial output. It is calculated based on the industrial production survey.

The IPI data is based on the International Standard Industrial Classification of Economic Activities (ISIC 4), and the index is published monthly.



Saudi Index Extends Gains

An investor monitors the Saudi stocks (AFP)
An investor monitors the Saudi stocks (AFP)
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Saudi Index Extends Gains

An investor monitors the Saudi stocks (AFP)
An investor monitors the Saudi stocks (AFP)

Most Gulf stock markets rose in early trade on Sunday, with the Saudi index extending gains to a fifth session.

Saudi Arabia's benchmark index .TASI climbed 2%, with all of its constituents posting gains, led by energy and materials stocks.

Saudi Aramco advanced 4% and Yanbu National Petrochemical surged 10%.

The Qatari benchmark .QSI rose 0.1%, with Mesaieed Petrochemical Holding gaining 5.3% and telecommunications company Ooredoo adding 2.1%.

In Muscat, ⁠the ⁠share index .MSX30 was up 1.4% and Bahrain's index .BAX edged up 0.2%.

Kuwait's index .BKP eased 0.5%, with most stocks in negative territory.

Kuwait Petroleum Corporation began cutting oil output on Saturday and declared force majeure, adding to earlier oil and gas reductions from Iraq and Qatar as the US-Iran war blocked shipments from the Middle East for the eighth consecutive day.


Kuwait Makes Precautionary Cut in Oil Production

The Kuwait Petroleum Corporation (X)
The Kuwait Petroleum Corporation (X)
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Kuwait Makes Precautionary Cut in Oil Production

The Kuwait Petroleum Corporation (X)
The Kuwait Petroleum Corporation (X)

The Kuwait Petroleum Corporation (KPC) said on Saturday it has implemented a precautionary reduction in crude oil production and refining throughput as part of its risk management and business continuity strategy.

The decision came “in light of the ongoing aggression by Iran against the State of Kuwait, including Iranian threats against safe passage of ships through the Strait of Hormuz,” KPC said in a statement.

KPC affirmed the adjustment is strictly precautionary and will be reviewed as the situation develops.

“The corporation remains fully prepared to restore production levels once conditions allow. KPC stresses that all domestic market needs remain fully secured in accordance with established plans,” the statement said.

It added that KPC remains committed to prioritizing employee safety, safeguarding Kuwait's national assets, and promoting stability within global energy markets.

The statement said further updates will be provided as appropriate.

On Friday, West Texas Intermediate (WTI) crude futures climbed more than 10%, pulling closer to Brent as buyers sought available barrels, with Middle Eastern supply constrained by the effective closure of the Strait of Hormuz amid the expanding US-Israeli conflict with Iran.

Brent crude futures were up $5.42, or 6.35%, at $90.83 a barrel, while WTI was up $7.81, or 9.81%, at $89 a barrel.

Kuwait’s reduction in crude oil production will put pressure on crude prices, which analysts said could hit $100 per barrel as the security situation in the Middle East spirals.

Qatar Energy Minister Saad al-Kaabi told the Financial Times in an interview published on Friday that his country expects all Gulf energy producers to shut down exports within weeks if the Iran conflict continues and drives oil to $150 a barrel.

Qatar halted its production of liquefied natural gas on Monday, as Iran continued to strike Gulf countries in retaliation for Israeli and US attacks.

Oil supply equal to about 20% of world demand usually passes through the Strait of Hormuz each day. With the Strait now effectively closed for seven days, that means about 140 million barrels of oil — equal to about 1.4 days of global demand — has been unable to reach the market.


Mawani Adds Hapag-Lloyd’s SE4 Service to Jeddah Islamic Port

Mawani Adds Hapag-Lloyd’s SE4 Service to Jeddah Islamic Port
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Mawani Adds Hapag-Lloyd’s SE4 Service to Jeddah Islamic Port

Mawani Adds Hapag-Lloyd’s SE4 Service to Jeddah Islamic Port

The Saudi Ports Authority (Mawani) announced the addition of Hapag-Lloyd’s SE4 shipping service to Jeddah Islamic Port, a move designed to bolster the Kingdom's maritime competitiveness and global trade connectivity, reported the Saudi Press Agency on Saturday.

This new route links Jeddah to major international hubs, including Tianjin Xingang, Qingdao, Ningbo, and Shanghai in China, as well as Busan in Korea and Tanjung Pelepas in Malaysia.

Boasting a capacity of up to 17,000 TEUs, the service aligns with the National Transport and Logistics Strategy to establish Saudi Arabia as a leading global logistics hub connecting three continents.

Jeddah Islamic Port continues to expand its operational footprint, utilizing its 62 multi-purpose berths and specialized terminals to support a total handling capacity of 130 million tons.