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Report of the Banque Audi: Syria has become a net importer of oil in the last two years .. the oil sector in Syria is no longer the primary engine of the Syrian economy … Syria reserves of oil is up 3% of the Kuwait

Affected by the oil sector in Syria as prices fall in year-end 2008 and early 2009 in a country depends partly on where oil production is likely to impact this sector weighed on economic growth in general. Indeed, according the International Monetary Fund is expected to register a negative growth of the oil sector represented 1,9% – after he had recorded a lower percentage decrease in the year 2008 (0,1% -)
Thanks to high world oil prices at the beginning of last year.

 

 

 However, the recession happening in the oil sector in Syria is not new and not caused by the oil boom in the world, but it has continued over the past decade, the decline in oil production has kept real GDP growth oil up to a negative 3,6% – annually during the past five years.

 
In 2008 production was estimated Syria’s crude oil by about 390,000 barrels per day, while the estimated total production of petroleum liquids, which includes crude oil and natural gas liquid is around 450,000 barrels per day.

 
Oil production has declined gradually and is not expected never to rise in the near term. But at the same time, it is expected that demand will rise by 4% to 5% annually over the next two years, making Syria increasingly dependent on oil derivatives. In fact, Syria became a net importer of oil in the past two years, which consumed 256,000 barrels of oil per day in 2008 according to information management of U.S. oil (Us Energy Information Administration) and the value of imports of oil and gas about 5,656 million dollars in 2008, while exports amounted to 5,608 million dollars, according to statistics Central Bank of Syria. The oil revenues entrusted to constitute the largest share of public revenues is only about a fifth of the income the state today.

 
oil reserves in Syria Started to carry out gradually and reached in January 2009 about 2,9 billion barrels, equivalent to half of the oil reserves in Oman, and 3% of the reserve Kuwait according to the Bulletin of oil and gas (Oil and Gas Journal) and therefore, efforts are geared Syrian towards a more efficient use of oil in addition to the use of gas and oil imports from neighboring countries. On the other hand, began production of natural gas appears as an opportunity for the future.

 

Syria hopes to benefit from its strategic location as a transit point for Egyptian natural gas, and Iran and Iraq. It will ensure that availability of natural gas and it would benefit from transit revenues.

 

Total daily production of gas about 20,7 million cubic meters in 2008 and arrived in the first quarter of 2009 to 21,6 million cubic meters while the capacity reserves of about 8,500 billion cubic feet (240 cubic km) and the Syrian government has begun work with a global energy company in order to become an exporter of gas, despite the fact that all the gas currently being produced is consumed at home, and Syria imports about 5 billion cubic feet of natural gas from Egypt via the Arab gas pipeline and are moving to Lebanon and Turkey. It is also currently considering the issue of increasing the volume of exports of Egyptian gas to 35 million cubic feet per day to the Lebanese market and, consequently, raise transit fees.

 

 This and the conclusion of similar agreements with Iraq, as countries began research since February 2009 in the establishment of a new line of natural gas as well as Syria signed in April 2009 cooperation agreement with Iran in order to create a natural gas pipeline between the countries can arrive to Europe.
In fact, in light of the good flow of foreign investments, taking into account the political isolation of Syria is witnessing the Hydrocarbon sector improvement. How the regulatory environment is evolving as a new legislation in February 2009 to review the drafting of new laws in the construction sector and the imposition of more efficient use of energy and reduce consumption. Also issued two decrees in the other end of the month to create two new bodies Taatakaflan organized sectors of exploration and refining and in order to re-organize and separate the function of systems and processes. And will be the establishment of the General Corporation for Oil Refining and distribution of petroleum products to be responsible for companies operating refineries in Syria and refining of petroleum products distribution company.

 
The oil refining sector in Syria in case growth is also, Syria has two refineries with a capacity to total governmental organizations about 240,000 barrels per day to produce heavy derivatives only. According to the press and local media, the refineries refine crude oil and filter and light products that meet European standards for imports of fuel as well as concluded that the Syrian Oil Ministry signed a contract with China, China National Petroleum Corporation, to establish a refinery in east Deir al-Zour by the year 2011, for refining heavy crude oil and other types. And has a capacity of about 100,000 barrels per day were also signed a contract with Iran, Venezuela and Malaysia for the establishment of a refinery in Frqls (near the northern city of Homs) and has a capacity of about 140,000 barrels a day.

 
The oil sector in Syria is no longer the primary engine of the Syrian economy, especially in light of recent global developments and the expected entry into force of the oil reserves at the end of the next decade. But the Syrian authorities seem aware of the status quo and working to build on the strengths of others to take advantage of existing infrastructure for energy and the country’s strategic location and close to the States is more important to Syria for the production of hydrocarbon energy. At the same time, it is important to direct efforts and resources to other productive sectors could push forward the national development and be a protection of the retreat of energy in the long run.

 
Annual Economic Report of Bank Audi Syria

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