Rabigh Refining & Petrochemical Co. (2380.SE)

2,0001,6001,2008004000Saudi Arabia's NominalGDP2004 2005 2006 2007 2008E30.0%25.0%20.0%15.0%10.0%5.0%0.0%70.0%56.0%42.0%28.0%14.0%0.0%Contribution to GDP (%)2004 2005 2006 2007 2008ENominal GDP (SAR Billions) Nominal GDP Grow th (%)Source: SAMA, Central Department of Statistics & InformationOil to GDPNon-oil to GDPIn 2008, Saudi Arabia sawthe largest productionincrease, with output rising397,000 bpdAccording to BP Statistical Review of World Energy 2009, global oil production increased from 76.99million barrels per day (bpd) in 2003 to 81.82 million bpd in 2008. Despite production cuts institutedlate in the year, production from Organization of the Petroleum Exporting Countries (OPEC) increased991,000 bpd led by a 4.0% increase in production from the Middle East. Among the OPEC members,Saudi Arabia saw the largest production increase of 397,000 bpd followed by Iraq, which witnessed a279,000 bpd rise. Oil production outside OPEC however fell 1.4% during the year. Organisation forEconomic Co-operation and Development (OECD) production fell by 748,000 bpd, with Mexicowitnessing the world’s largest decline (314,000 bpd). Russian oil production fell by 92,000 bpd - thefirst decline since 1998. As per data from the US Energy Information Administration (EIA), SaudiArabia (8.41 million bpd) was the largest oil exporter in 2008, followed by Russia (6.88 million bpd)and the UAE (2.58 million bpd).Oil Production (in thousand bpd)Top 5 Oil Producing Countries in Middle East (in thousand bpd)30,00012,00024,0009,60018,00012,0006,000-North AmericaSouth &CentralAmericaEurope &EurasiaMiddle East Africa Asia Pacific7,2004,8002,400-Saudi Arabia Iran United ArabEmiratesKuw aitIraqSource: BP Statistical Review2007 2008Source: BP Statistical Review2007 2008Global oil consumptiondeclined in 2008 led byweak demand from the USGlobal oil consumption declined 0.6% (or 423,000 bpd) in 2008 - the first decline since 1993 and thelargest since 1982. Consumption in OECD countries dropped 3.2% (or 1.53 million bpd) for the thirdconsecutive year of decline. This was mainly led by a 6.4% or 1.26 million bpd drop in consumption inthe US. Countries outside the OECD also witnessed a slowdown in consumption growth by 1.10million bpd. However, on a positive note, according to OPEC, the demand for oil is expected to rise by4.6 million bpd over 2008-15 and by 10 million bpd by 2020. At the same time, the increasingattractiveness of non-crude products is likely to negatively impact demand for refined products tosome extent.Oil Consumption (in thousand bpd)Top 5 Oil Cosuming Countries (in thousand bpd)30,00022,00024,00017,60018,00012,0006,000-North AmericaSouth &CentralAmericaEurope &EurasiaMiddle East Africa Asia Pacific13,2008,8004,400-US China Japan India RussianFederationSource: BP Statistical Review2007 2008Source: BP Statistical Review2007 2008