Saudi Arabia’s Liquids Displacement Program (LDP) is beginning to have an impact on global trade flows. For years, Saudi oil burn was on a steady upwards trajectory as a rising population drove strong electricity demand and domestic gas production growth was unable to keep up. Oil burn ultimately peaked at 1.1mn b/d over 2022-2024 before targeted investments in gas and renewables finally put it in reverse.
Oil burn fell by around 100,000 b/d in 2025, with the latest Jodi data to November implying that it could have fallen below 1mn b/d on an annual basis for the first time since 2019. Much of the external focus is on the impact on crude oil availability, but the LDP is also aimed at reducing fuel oil burn. Indeed, Saudi fuel oil consumption fell by much more than crude burn last year (MEES, 23 January). (CONTINUED - 1004 WORDS)
