Solazyme Develops Solazymes Natural-Sourced Oil Sources
Solazymesh has a lot going for it, but it’s still far from a “gold mine” for its oils.
According to a study from The Wall Street Journal, Solazymena only has 1% of the world’s proven oil reserves, and that’s mostly in the Middle East.
The oil-rich region’s oil fields are mostly located in Saudi Arabia, Bahrain, Qatar, and the United Arab Emirates.
But it’s also home to countries like Algeria, Iran, and Venezuela, which produce oil at high volumes.
And these countries have been in dire need of an alternative to petroleum imports.
The Journal reports that a study conducted by the Institute for Sustainable Development, a U.S.-based non-profit, found that Saudi Arabia could be a major market for Solazymana’s oils, and could help alleviate pressure on global oil supplies.
According the study, Saudi Arabia would need to import $8.3 billion per year to meet the global demand for oil, and $2.2 billion per month to meet supply.
According to the WSJ, Saudi officials have expressed concerns about the price of oil, which has spiked since the March 1 OPEC oil supply cut.
In an interview with CNBC, the Saudi Deputy Crown Prince Mohammed bin Salman said the country could not sustain the prices of its oil, due to high production costs.
“I am not the only one to worry about the impact of oil prices.
There are others that are worried,” said Prince Mohammed, a key adviser to the kingdom’s crown prince.
“We are not the first to worry, we are not even the fifth-largest oil producer in the world.
It is only the fourth time in the last 10 years that we have had a supply disruption.”
Saudi Arabia’s oil-importing partners, the United States and European Union, are hoping the oil market will soon stabilize, with OPEC announcing a deal to cut production to prevent price spikes.
But the current crisis in the oil sector has forced the Saudi government to consider alternative supply sources.
As the WSJD article notes, Saudi Aramco, the kingdoms state-owned oil company, has been using Solazyma’s oils to produce oil products, such as diesel engines, power plants, and light bulbs.
Saudi Aramos production has been relatively stable for the last few years.
But in February, Aramos announced that it had reached a $3.6 billion agreement to buy back all its crude oil reserves and return them to the government.
That deal is scheduled to close in 2021.
The WSJ article notes that Aramos has also been testing an alternative oil called “Tunisian Ligurian,” which is made with oil from the same region.
But Aramos’ Liguria oil is made from ethane and is far less refined than Solazyms oils.
The WSJ reports that Ligura has not yet been approved for use in Saudi Aramo’s production facilities, but the company is still looking for a way to get its oil into the country.
While the Aramos deal could make Saudi Aramas more competitive in the market, it will not help Solazymeds oil supply.
According a WSJ report, Soladymes oil reserves are around 60 million barrels, and it could take another two years for its oil to reach markets.
As the world struggles to meet demand for cheap oil, it may be time to rethink how we import our oil.