Abstract
* Petroleum Expert, Drilling & Production Technical affairs Department, OAPEC, Kuwait.
Development of the Petroleum Industry In Arab Countries,
Current and Future Perspective (2 - 2)
Emad Makki *
The petroleum refining industry plays a significant role in the economy of Arab
countries. It provides the most important resource of energy which keep the country
moving.
Like at many part of the world, the refining industry in Arab countries is under
considerable pressure. The Arab refineries needs heavy investments for improving
the environmental features of the fuels it produces and reducing direct emissions to
the environment.
The main purpose of this study is to examine the reasons behind the main challenges
facing the refining industry in Arab countries, address the necessary measures needed
for improving the operational performance and bringing the Arab refineries into a new
era of prosperity.
The study is structured in three chapters, the first section reviews the historical
development stages of petroleum refining sector in OAPEC members and the other
non-OAPEC Arab countries, the challenges facing its operation and the correction
measures taken to eliminate the impacts of these challenges.
The second chapter gives an overview of the Arab refining industry. It discusses the
challenges facing the refining industry in Arab countries, analyze the impacts of these
challenges on the performance and the profitability of the petroleum refineries.
To meet these challenges, most of Arab refiners announced plans to install new
refineries, in attempt to improve the ability to produce clean fuel according to the
international standards, meet the growing local market demand of petroleum products
and enhance its competitiveness in the international markets.
In addition to installing new refineries, most of the Arab existing refineries will be
revamped and upgraded, so that they do operate properly and become commercially
viable.
The third chapter discusses inmore details the development of key issues and challenges
facing the refining industry in each Arab country. It also contains information about the
current refining capacity and forecast for future expansion projects.
Finally, as noted in the conclusion of this study, although much progress has been
made in recent years for improving the performance of the refining industry in Arab
countries, there is a significant need for much more measures to be taken for improving
its competitiveness to match the international level.
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