Mineral Industries Of The Middle East - Introduction

The production and processing of crude petroleum and natural gas are the dominant economic sectors of the Middle East. The 15 countries that constitute the region accounted for 28% of world crude petroleum output, 17.2% of world natural gas plant liquid production, and 5.3% of world dry natural gas production. Only Cyprus and Lebanon were not crude petroleum producers. About 66% of total world crude petroleum reserves and 31 % of total world natural gas reserves are in the Middle East. Transportation and port facilities in the region are geared to expediting efficient and rapid shipment of these materials. Export sales of these fuels provide funding for further diversification of the mineral industry. Additional development of downstream facilities for producing energy-intensive metals such as aluminum and byproducts of the fuels such as petrochemicals and fertilizers can be expected. Earnings from the industry are also channeled by several Governments in the region to mineral industry projects in Africa and elsewhere. Several countries in the region own major petroleum refineries and distribution facilities worldwide. Petroleum prices rose overall during the year owing to the invasion by Iraq of Kuwait in August 1990. Output from both countries, the fourth and fifth largest producers, respectively, in the Middle East, was negatively affected by the war. Kuwaiti crude oil wells and pipeline facilities suffered extensive war damage while exports of petroleum and petroleum refinery products by Iraq ceased owing to a U.N. embargo. The embargo also impacted Jordan, an exporter of phosphate and potash. Shipments of crude petroleum by pipeline from Iraq through Saudi Arabia and Turkey and by vessel through the Persian Gulf were terminated. However, the loss in production from Iraq and Kuwait was more than made up by accelerated output from other Middle East and world producers. Saudi Arabia, in particular, with its excess production capacity, accounted for the largest portion of the increase.