Saudi Arabia hosted the 25th World Petroleum Council Energy Congress in Riyadh from Sunday through Thursday, proceeding despite a Houthi attack on King Khalid International Airport that resulted in 12 deaths and 309 injuries. The event included the 17th International Energy Forum Ministerial, bringing together 68 countries accounting for over 90 percent of global oil and gas supplies and demand. Italy participated via videolink while Nigeria sent a representative.
Fossil fuels remain the dominant global energy source at nearly 81 percent of consumption, with oil comprising 31.4 percent, coal 25.9 percent, and natural gas 23.5 percent. The Middle East ranks as the world’s largest oil-producing region, while North America leads in natural gas production. Three critical maritime passages connect Middle Eastern producers to global markets: the Strait of Hormuz, Bab al-Mandeb strait, and Suez Canal. Prior to the Iran war, approximately 27 percent of global seaborne oil trade and nearly 20 percent of liquefied natural gas trade transited the Strait of Hormuz.
The ongoing Iran war and associated regional instability have disrupted traffic through these chokepoints, forcing energy shipments onto longer routes around Africa. Countries most dependent on Middle Eastern oil include Eritrea and Madagascar at roughly 90 percent reliance, followed by Pakistan, Japan, and Kenya at 77-78 percent. Liquefied natural gas dependence is concentrated in Asia, with South Korea sourcing 31 percent from the region, India 29 percent, and Pakistan and Taiwan each 26-27 percent.
Global emergency oil reserves have been significantly depleted in response to supply disruptions. The International Energy Agency released a record 400 million barrels in March and prepared an additional 100 million barrel release to address diesel price increases. The US Strategic Petroleum Reserve has fallen to its lowest level since 1982, while commercial inventories are estimated at less than 6 billion barrels with limited practical availability. Energy industry leaders warned that Western nations have minimal reserves remaining to release. Before recent drawdowns, China held the largest reserves at approximately 1.4 billion barrels, followed by the United States with 413 million and Japan with 263 million.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI