Citigroup Inc. has said the world’s biggest crude exporter, Saudi Arabia risks becoming an oil importer in the next 20 years. Oil and its derivatives are used for about half of the kingdom’s electricity production, which at peak rates is growing at about 8% a year, the bank said. Renowned Oil Industry Expert, Mike Rothman says “Nevertheless, with refined product oil demand growing about 7% a year, the Saudis are consuming more than 25% of their total oil production (crude & liquids) – which looks to keep expanding. Aside from the issue of OPEC’s spare output capacity having been exhausted, the KSA’s oil burn, at a minimum, contributes to the Saudi’s hawkish oil price stance.” Continue reading →