The Mineral Industry Of Bahrain

CRUDE OIL refining continued to be the foremost industry of Bahrain in 1963. This island, the largest of a group 30 kilometers off the Saudi Arabian coast, is the site of the first petroleum discovery in the Persian Gulf and in the Arabian peninsular region. The island's only oilfield was discovered in 1932; exports of crude began in 1934 and the refinery was built in 1936. Although its crude oil has been less than 1 percent of annual Middle East output in recent years, Bahrain has been an important refining center for many years, processing a substantial portion of Saudi Arabian petroleum as well as all local production. The Bahrain refinery annually accounts for 17 percent 0 the petroleum products produced in the Middle East and 25 percent of the exports. Bahrain's mineral resources consist of oil, gas, and basic construction materials. Petroleum production and refining are the important mineral industries and contribute most of the national income by payments for taxes, wages, and local services including construction and material supply. The petroleum industry has supported a large share of local business and extensive indirect employment, and its early establishment also helped Bahrain to strengthen its position as a trading center in the Persian Gulf. The country's entrepôt trade produces about 20 percent of Government revenue, and Bahrain is somewhat less dependent on the petroleum industry than are the neighboring States to the west.