The 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. Downstream processing of these mineral fuels to petrochemicals and fertilizers is a major investment opportunity. In 1991, the 15 countries that constituted the region accounted for 26 % of world crude petroleum output, 15.3 % of world natural gas plant liquid production, and 4.5 % of world dry natural gas production. Only Cyprus and Lebanon were not crude petroleum producers. Production of these mineral fuels all declined from that of 1990 owing to the Persian Gulf War, during which output from Kuwait and Iraq either ceased owing to war damage, or was embargoed. Prior to the war, Iraq and Kuwait were the fourth and fifth largest world producers of crude petroleum, respectively. In the war, virtually all of Kuwait's production and transport facilities were destroyed or damaged. Iraq's output was embargoed from export, with only domestic sales taking place. The embargo also affected Jordan, both in terms of transshipment of materials through it to Iraq and in exports 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 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, increasing crude petroleum output by 27 % to almost 3 billion barrels.