Chevron said it may use solar power in 2013 to produce the steam needed to pump heavy crude from Saudi-Kuwaiti oilfield, Bloomberg reported. Chevron operates Saudi Arabia's share of the Wafra oilfield, while Kuwait Gulf is responsible for managing Kuwait's share. Hashim Al-Rifaai, chairman and managing director of Kuwait Gulf Oil Energy, said energy from the sun would heat water to create steam, which would then be injected underground to make the heavy oil liquid enough to flow. Solar power would be used in conjunction with burning natural gas for the so-called steam-flood development at the Wafra field. The neutral zone produces 220,000 barrels a day onshore and 320,000 barrels offshore, Al-Rifaai said. While the offshore target is 350,000 barrels, onshore output is dropping, and developing the heavy oil would help maintain total output and the crude would be exported to Asia, upgraded or used in a planned refinery in Kuwait, he added. Chevron is assessing the use of solar energy as it seeks to free up much-needed natural gas, and a final investment decision for the development will be made next year, with the aim of producing as much as 600,000 barrels a day of heavy oil from 2017. The price of oil is headed for its biggest monthly decline since December 2008. Benchmark US crude has dropped nearly 16 percent so far in May on growing expectations that world won't use as much as previously thought this year. The futures contract fell $2.93, or 3.2 percent, to $88.08 in Wednesday morning trading in New York. Analysts point to weak US jobs numbers and a slowdown in China's manufacturing sector. The US and China are the biggest oil consumers in the world. Experts also are concerned by a banking crisis in Europe that may pull the eurozone into recession. Economic confidence has plummeted this month in Europe, pushing the euro to its lowest level in two and a half years. – AgenciesBrent crude fell by $2.69 to $103.99 per barrel in London.
