Bahrain's Oil Production: Current Statistics And Future Projections

how much oil does bahrain produce

Bahrain's economy is heavily dependent on oil and gas, with petroleum being the country's most exported product. In 2016, Bahrain produced 63,886 barrels of oil per day, ranking 59th in the world. However, Bahrain is a relatively small oil producer compared to other Gulf nations, with an output of around 198,000 barrels per day. While the country has been working to diversify its economy, oil still accounts for a significant portion of its budget revenues, and recent discoveries of large oil reserves could further reinforce the importance of this sector.

Characteristics Values
Oil Reserves 124.56 million barrels as of 2016
Global Rank in Oil Reserves 67th
Years of Oil Left 6 years (at current consumption levels)
Oil Consumption 62,000 barrels per day as of 2016
Global Rank in Oil Consumption 91st
Oil Production 63,886 barrels per day as of 2016
Global Rank in Oil Production 59th
Percentage of Total Proven Reserves Produced Yearly 18.7% as of 2016
Percentage of Oil Imported 93% as of 2016
Oil Imports 57,726 barrels per day in 2016
Oil Revenue as Percentage of Government Income 70% since 2007
Oil Revenue as Percentage of GDP 11%

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Bahrain's oil reserves

Bahrain's oil revenues come from two fields: the onshore Bahrain field and the offshore Abu Safah field, which it shares with Saudi Arabia. In April 2018, the Bahraini government announced a significant discovery of hydrocarbon deposits, estimated to be at least 80 billion barrels of tight oil and between 10 and 20 trillion cubic feet of deep natural gas. This discovery is expected to boost Bahrain's economic and fiscal strength by increasing its rate of hydrocarbon production and extending its current rate of production.

Bahrain's onshore oil reserves are estimated to be around 125 million barrels, which would last less than seven years at the current rate of production. Bahrain's oil production has stabilized at about 40,000 barrels per day, and reserves are expected to last 10 to 15 years. The Bahrain Petroleum Company refinery, built in 1935, was the first in the Persian Gulf and has a capacity of about 250,000 barrels per day.

While Bahrain has been working to diversify its economy away from oil, revenues from oil exports still make up a significant portion of government income. In 2017, hydrocarbon-related revenue accounted for 75% of government revenue, down from 87% in 2013. Lower world energy prices have generated sizeable budget deficits, with oil comprising 85% of Bahraini budget revenues. Bahrain's finance industry has also benefited from the regional boom driven by demand for oil, with Islamic banking being a particular success.

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Oil production ranking

Bahrain is a small non-OPEC Gulf oil producer with approximately 124.6 million barrels of proven oil reserves as of 2016, ranking 67th in the world. As of 2016, Bahrain produces 63,886 barrels of oil per day, ranking 59th in the world.

In terms of oil production, Bahrain is far behind the world's top oil producer, the United States, which produces over 17 million barrels of oil per day. The United States has been the world's top oil producer for six consecutive years as of 2023, thanks to a significant increase in oil output since 2010 due to shale oil fracking.

Several countries have larger total oil reserves than the United States, but it has still surpassed Russia and Saudi Arabia in oil production. The main producers of oil in the United States are Texas, federally-owned offshore facilities, New Mexico, and North Dakota, with Alaska, Colorado, Wyoming, and California also contributing significantly.

The top 10 countries in oil production account for approximately 72% of world oil production, with OPEC members contributing about 35%.

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Oil consumption

Bahrain's oil consumption ranks 91st in the world, accounting for about 0.1% of the world's total consumption of 97,103,871 barrels per day. As of 2016, Bahrain consumes 62,000 barrels of oil per day (B/d), or 1.82 gallons of oil per capita every day, and 665 gallons per capita per year (16 barrels).

Bahrain imports 93% of its oil consumption, which was 57,726 barrels per day in 2016. This heavy reliance on imports is due to Bahrain's limited oil reserves and production capacity. Bahrain's onshore oil reserves are estimated to be around 124.56 to 125 million barrels, ranking 67th in the world and accounting for about 0.0% of the world's total oil reserves. At the current rate of production, these reserves are expected to last less than seven years.

Bahrain's oil production stands at 63,886 barrels per day as of 2016, ranking 59th in the world. The country produces an amount equivalent to 18.7% of its total proven reserves annually. Bahrain receives its oil revenues from two fields: the onshore Bahrain field and the offshore Abu Safah field, which it shares with Saudi Arabia. The Abu Safah field contributes significantly to Bahrain's oil production, providing around 150,000 barrels per day.

Despite efforts to diversify its economy, Bahrain remains heavily dependent on oil and gas. Petroleum is Bahrain's most exported product, accounting for 60% of export receipts, 70-85% of government revenues, and 11% of GDP. The revenue generated from oil exports plays a crucial role in the country's economy, contributing significantly to government income and overall economic growth.

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Oil exports

Bahrain's oil exports are closely tied to its trade relationships, particularly with Saudi Arabia. Bahrain receives a significant portion of its oil revenues from the Abu Safah field, which it shares with Saudi Arabia. This offshore field contributes around 150,000 barrels per day (bpd) to Bahrain's output. Additionally, Bahrain's crude oil supply for refinery operations is largely dependent on imports from Saudi Arabia via pipeline.

In April 2018, Bahrain announced a significant discovery of hydrocarbon deposits, estimated to be around 80 billion barrels of tight oil and 10-20 trillion cubic feet of deep natural gas. This discovery is expected to boost Bahrain's economic and fiscal strength by increasing hydrocarbon production and extending the current rate of production. According to Moody's credit ratings agency, this find could stimulate private investment in the country's energy sector and reduce the country's fiscal and current account deficit.

Despite Bahrain's efforts to diversify its economy, oil exports continue to play a dominant role. Petroleum accounts for 60% of export receipts, 70% of government revenues, and 11% of GDP. The country's economic growth has been influenced by fluctuations in oil prices, with sustained high oil prices contributing to economic growth of 5.5% since 2001.

While Bahrain has made strides in economic diversification, with the non-oil sector showing robust growth in recent years, oil exports remain a crucial aspect of the country's economy and a significant source of government revenue.

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Oil's contribution to Bahrain's economy

Oil and gas are the only significant natural resources in Bahrain, and they play a dominant role in its economy. Bahrain's oil production is relatively small compared to other Gulf nations, with an output of around 198,000 barrels per day (bpd) as of 2018. Of this, around 150,000 bpd come from the offshore Abu Safah field, which is shared with Saudi Arabia. Bahrain also has onshore oil reserves estimated at around 124-125 million barrels, which, at the current rate of production, would last less than seven years.

The Bahraini government has recognised the need to diversify its economy away from its limited oil supplies and has made efforts to do so. Despite these efforts, oil still comprises a significant portion of the country's budget revenues. According to the CIA World Fact Book, oil comprised 85% of Bahraini budget revenues in the years leading up to 2024, and lower world energy prices have generated sizeable budget deficits, including about 10% of GDP in 2017 alone. Oil revenues account for over 70% of government income since 2007, and petroleum is Bahrain's most exported product, accounting for 60% of export receipts, 70% of government revenues, and 11% of GDP.

In April 2018, Bahrain announced its biggest oil discovery since the 1930s, with an estimated 80 billion barrels of tight oil and 10-20 trillion cubic feet of deep natural gas found off the country's west coast. This discovery could be a boon for Bahrain's economy, helping to clear its budget deficit and boost its economic and fiscal strength, according to analysts. The discovery could stimulate private investment in the country's energy sector and increase government oil and gas-related revenue, reducing Bahrain's fiscal and current account deficit.

While Bahrain continues to diversify its economy, the oil and gas sector remains a strong component. The country has targeted manufacturing industries such as plastics, fiberglass, chemicals, and petrochemicals as areas for growth. Bahrain is also actively exploring Carbon Capture and Storage (CCS) technology to deploy across its oil and gas and industrial sectors.

Frequently asked questions

Bahrain produces 63,886 barrels of oil per day, as of 2016.

Bahrain has 124.6 million barrels of proven oil reserves as of 2016.

Bahrain consumes 62,000 barrels of oil per day, as of 2016. This means that it produces slightly more than it consumes.

Oil comprises 70-85% of Bahrain's budget revenue.

Oil and gas play a dominant role in Bahrain's economy, with petroleum being the country's most exported product.

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