Saudi Arabia wants to become a big exporter of chemicals, fertilizers, aluminum, and plastics.
Industrial developments will consume large quantities of Saudi oil that otherwise would be bought by other countries
Increased consumption by Middle Eastern countries by their industrial development efforts comes at a time when oil production is slumping in North Seas fields and in Mexico.
Saudis are burning crude oil to make electricity for aluminum and copper smelting and other industries
p A17
Industrial development is fast-paced in many Middle Eastern countries; per capita oil consumption in Saudi Arabia is 32 barrels; per capita oil consumption in the U.S. is 25 barrels @$94.39.
At the futures price for a bushel of soybeans, 8 bu. pay for 1 barrel; at the futures price for a bushel of corn, almost 22 bu. pay for 1 barrel.
At that conumption by Saudis, the U.S. Dept. of Energy estimates 1/3 of Saudi oil will be for its industrial growth by 2020
Bringing fresh batches of oil to market is increasingly difficult for all nations
Saudi royal mandate: use oil in electricity production plants; 2 cents per kWh or less
By 2012, 60% of Saudi power plants will be burning crude oil
Nuclear power is definitely in the power plant future for the Saudis
Four new "economic cities," each have a 3,000 MW power plant, are being built as homes for petrochemical, smelting, fertilizers, and chemicals production
Energy-intensive industrial development is being done because "this is where the energy is."
[Is this good or bad for the wind industry? The strategy looks like OPEC but adding monopolies of
- fertilizer production & exporting
- petrochemicals production & exporting and
- aluminum and copper production & exporting.
We have a tremendous potential farm energy production industry here in South Dakota and elsewhere, but transforming that potential into energy self-sufficiency will demand teamwork.
Revisiting Jurassic Park: "Hold onto your butts."]
