Bahrain's Oil Reserves: A Comprehensive Overview

Bahrain's economy is heavily dependent on oil and gas, with petroleum being the country's most exported product. In 2016, Bahrain held 124,560,000 barrels of proven oil reserves, ranking 67th in the world. However, Bahrain's onshore oil reserves are limited and are estimated to last less than seven years at the current rate of production. In April 2018, Bahrain announced its biggest oil discovery in decades, with an estimated 80 billion barrels of tight oil found off the west coast. This discovery could significantly enhance Bahrain's economic and fiscal strength, helping to boost hydrocarbon production and reduce the country's budget deficit.

Bahrain's oil reserves are approximately 124.6 million barrels

Bahrain's economy is heavily dependent on oil and gas. Oil revenues account for over 70% of government income, and petroleum is Bahrain's most exported product, making up 60% of export receipts, 70% of government revenues, and 11% of GDP. In 2016, Bahrain consumed 62,000 barrels of oil per day and produced 63,886 barrels per day.

Bahrain has recognised the need to diversify its economy away from its limited oil supplies and has invested in other sectors such as banking, tourism, and heavy industries. In 2008, Bahrain was named the world's fastest-growing financial centre, and its finance industry, particularly Islamic banking, has benefited from the regional boom driven by oil demand. Additionally, Bahrain has the second-highest-valued currency unit in the world, the Bahraini Dinar.

Despite these efforts, oil still comprises 85% of Bahraini budget revenues, and lower world energy prices have generated significant budget deficits. In 2018, Bahrain announced its biggest oil and gas discovery since the 1930s, with an estimated 80 billion barrels of tight oil in an extensive reservoir off the west coast. This discovery could help improve Bahrain's economic and fiscal strength, allowing the kingdom to boost its hydrocarbon production and reduce its fiscal deficit.

The Bahrain Petroleum Company refinery was built in 1935

Bahrain's economy remains strongly tied to the oil and gas sector, despite efforts to diversify. The country has approximately 124.6 million barrels of proven oil reserves, ranking 67th in the world. The Bahrain Petroleum Company (BAPCO), established in 1929, plays a pivotal role in the country's oil industry.

In 1935, six years after its founding, BAPCO constructed a refinery with an initial capacity of 10,000 barrels per day. This marked a significant milestone in Bahrain's oil industry, paving the way for the country's future as a producer and exporter of oil. The refinery's capacity has since undergone substantial expansion, reflecting the evolving nature of the industry and the country's growing expertise in oil refining.

The Bahrain Petroleum Company refinery, built in 1935, stands as a testament to the country's longstanding history in the oil industry. Over the years, this refinery has undergone numerous upgrades and expansions to meet the evolving demands of the global energy market. BAPCO's journey began in 1929 when it was established in Canada by the Standard Oil Company of California. The company secured the sole oil concession in Bahrain in 1930 and made its first oil discovery in 1931.

The construction of the refinery in 1935 represented a pivotal moment in BAPCO's trajectory. With an initial capacity of 10,000 barrels per day, it laid the foundation for Bahrain's emergence as a notable player in the oil industry. The refinery's capacity has since been expanded multiple times, reflecting the country's commitment to harnessing its oil resources effectively. In 1936, BAPCO began exporting oil, solidifying its position as a key contributor to Bahrain's economic landscape.

The Bahrain Petroleum Company refinery has played a pivotal role in shaping Bahrain's oil industry and continues to be a central asset in the country's energy sector. Through ongoing upgrades and expansions, the refinery adapts to meet the evolving demands of the global energy market. As Bahrain strives to diversify its economy, the refinery remains a cornerstone of its industrial prowess, reflecting the country's resilience and forward-thinking approach to energy development.

Bahrain's oil and gas sector accounts for over 70% of government income

Bahrain's oil and gas sector is a cornerstone of the country's economy, with revenues from oil exports accounting for over 70% of government income since 2007. Bahrain's oil reserves are relatively small compared to other Gulf nations, with approximately 124.6 million barrels of proven reserves as of 2016. This places Bahrain 67th in the world in terms of oil reserves. The country receives its oil revenues from two fields: the onshore Bahrain field and the offshore Abu Safah field, shared with Saudi Arabia.

Bahrain's onshore oil reserves are estimated to be around 125 million barrels, which, at the current rate of production, would last less than seven years. In April 2018, Bahrain announced its biggest oil and gas discovery since the 1930s, with an estimated 80 billion barrels of tight oil and 10-20 trillion cubic feet of natural gas located off the west coast. This discovery could significantly enhance Bahrain's economic and fiscal strength by boosting hydrocarbon production and extending the current rate of production.

While Bahrain seeks to diversify its economy, the oil and gas sector remains crucial. Petroleum is Bahrain's most exported product, comprising 60% of export receipts, 70% of government revenues, and 11% of GDP. The country's success in attracting investment from other Persian Gulf states is partly due to its effective use of oil revenues to develop infrastructure and improve living standards. Additionally, Bahrain's banking and financial services sector, particularly Islamic banking, has benefited from the regional boom driven by oil demand.

To further strengthen its position, Bahrain is investing in a $7 billion upgrade of the BAPCO refinery, aiming to increase processing capacity and improve energy efficiency. The country is also exploring Carbon Capture and Storage (CCS) technology to deploy across its oil, gas, and industrial sectors. Bahrain's LNG joint venture completed the construction of the country's first LNG import terminal, a strategic asset to supplement local gas production and meet future demand. These initiatives demonstrate Bahrain's commitment to maximizing the potential of its oil and gas resources while also exploring sustainable alternatives.

In summary, Bahrain's oil and gas sector plays a vital role in the country's economy, contributing significantly to government income and driving growth in various industries. With ongoing investments, discoveries, and efforts to diversify, Bahrain aims to ensure its economic prosperity and resilience in the coming years.

Bahrain's onshore oil reserves will last less than seven years

Bahrain's oil and gas sector remains a strong component of its economy, with petroleum being the country's most exported product. In April 2018, Bahrain announced its largest oil and gas discovery since the 1930s, with an estimated 80 billion barrels of tight oil located off the west coast. However, this discovery requires further investigation.

Bahrain's onshore oil reserves are estimated to be around 124.6 million barrels, ranking 67th in the world. At the current rate of production, these reserves are expected to last less than seven years. Bahrain's total proven reserves are equivalent to 5.5 times its annual consumption, which means that without imports, there would be about six years of oil left.

Bahrain's economy has historically relied heavily on oil and gas, with oil comprising 85% of Bahraini budget revenues. However, due to limited reserves, the country has made efforts to diversify its economy. Bahrain has stabilized its oil production at approximately 40,000 barrels per day, and the government is seeking to develop other sectors such as manufacturing, petrochemicals, and tourism.

The Bahraini government's efforts to diversify the economy have shown some success, with the non-oil sector exhibiting robust growth. Bahrain's finance industry, particularly Islamic banking, has benefited from the regional boom driven by oil demand. Additionally, Bahrain was named the world's fastest-growing financial center in 2008, and its banking and financial services sector continues to expand.

While Bahrain's onshore oil reserves are limited, the country's recent discovery of 80 billion barrels of tight oil could significantly enhance its economic and fiscal strength. This discovery, if proven viable, could boost the country's hydrocarbon production and associated fiscal revenue, helping to reduce the kingdom's budget deficit and improve its balance of trade.

Bahrain's oil revenues come from the Bahrain field and the Abu Safah field

Bahrain's oil revenues come from two fields: the Bahrain field and the Abu Safah field. The Bahrain field is onshore, while the Abu Safah field is offshore and shared with Saudi Arabia. Bahrain's oil and gas sector remains a strong component of the country's economy, despite efforts to diversify.

Bahrain's oil reserves are limited compared to other Gulf nations, and the country has been working to diversify its economy away from oil. Bahrain's onshore oil reserves are estimated to be around 124.6 million barrels, ranking 67th in the world. This equates to approximately six years of oil left at the current consumption levels, excluding unproven reserves. Bahrain's oil production is stable at about 40,000 barrels per day, and these reserves are expected to last ten to fifteen years.

The revenue from oil exports is vital to Bahrain's economy, accounting for over 70% of government income since 2007. Hydrocarbon-related revenue made up 75% of government revenue in 2017, down from 87% in 2013. Petroleum is Bahrain's most exported product, making up 60% of export receipts, 70% of government revenues, and 11% of GDP.

In April 2018, Bahrain announced its biggest oil and gas discovery since the 1930s, with an estimated 80 billion barrels of tight oil and 10-20 trillion cubic feet of natural gas off the west coast. This discovery could significantly improve Bahrain's economic and fiscal strength, allowing the country to boost hydrocarbon production and reduce its budget deficit.

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