In 1929 the San Francisco-based Standard Oil Company of
California (Socal)--now known as Chevron--set up a
subsidiary to
acquire an oil exploration and production concession on
the
island of Bahrain. Socal drilling crews discovered oil in
1932,
and two years later the first shipment of crude oil was
exported
from Sitrah. By 1935, when sixteen oil wells were in
production
and construction of the Bahrain refinery commenced, the
royalties
that Socal paid to the government constituted more than 40
percent of the state budget. In 1936 Socal sold half of
its oil
interest to Texas Oil Company (Texaco) and, with its new
corporate partner, formed the Bahrain Petroleum Company
(Bapco).
In the years up to independence in 1971, Bapco oil
revenues
annually averaged 60 percent of government income and
helped to
finance major development, education, and health programs.
The
government of Bahrain acquired a 60 percent interest in
Bapco in
1975 and assumed control of the remaining 40 percent in
1980.
Bahrain's proven oil reserves are limited in comparison
with
the extensive oil fields of Kuwait and Saudi Arabia. As
early as
1965, Bapco estimated that one-half of the island's total
oil had
been depleted. Oil production peaked in 1977 at 77,000
barrels per day
(bpd--see Glossary)
and steadily declined thereafter.
During the 1970s and early 1980s, two developments
helped to
maintain the government's relatively high income from oil
revenues despite declining production. First was Bahrain's
share
of profits from the offshore Abu Safah oil field in the
Persian
Gulf between Bahrain and Saudi Arabia
(see
fig. 7). When
the two
countries demarcated their marine boundaries in 1958,
Bahrain
ceded its claims to an area of the gulf north of the
island in
return for a Saudi agreement to share the profits from any
oil
that might be discovered there. Subsequently, oil in
commercial
quantities was found in the seabed, and from 1968 to 1986,
revenues from the Abu Safah field contributed
significantly to
Bahrain's overall oil income. Since production from the
Abu Safah
field ceased in early 1987, Saudi Arabia has provided
Bahrain
with 75,000 bpd of crude oil as compensation for this
loss.
The second development was the more than tenfold
increase in
oil revenues that followed the December 1973 decision by
the
Organization of the Petroleum Exporting Countries (OPEC)
to
triple the international price of crude oil. During 1974
and
1975, income from oil accounted for an unprecedented 80
percent
of government revenues, although this percentage gradually
declined in subsequent years. Nevertheless, as long as oil
prices
remained high, oil revenues remained high. At the end of
1985,
however, Saudi Arabia significantly increased its own oil
production, which resulted in a glut of oil on
international
markets and caused prices to fall by more than 50 percent
in just
a few months. Bapco could not increase production from its
declining oil fields beyond 42,000 bpd, and consequently
Bahrain's oil revenues in 1986 were 65 percent less than
in 1985.
Oil revenues did not increase substantially until 1990,
when the
regional political crisis that accompanied Iraq's invasion
of
Kuwait precipitated a rise in oil prices. In 1991 oil
revenues
constituted about 62 percent of revenues in the
government's
budget (see
table 14, Appendix).
Although Bahrain has had an oil-based economy since
1935, by
1993 proven reserves were estimated at 200 million
barrels, and
the government anticipated that all oil would be depleted
by
2005. Nevertheless, the country's economists expected oil
to
remain important long beyond that date because of the
large
refinery Bapco has operated at Sitrah since 1937.
Periodically
expanded and modernized, the refinery has the capacity to
process
250,000 bpd of crude oil, at least five times the amount
produced
by the island's oil wells (see
table 15, Appendix). During
1992
the United States firm Bechtel Corporation began expanding
the
refinery's capacity to 360,000 bpd. More than 80 percent
of the
petroleum that the refinery processes comes via pipeline
from
Saudi Arabia. The Sitrah refinery has been refining Saudi
crude
oil since 1938 and expects to continue to do so well into
the
twenty-first century. Its refined petroleum products, most
of
which are exported, include aviation fuel, fuel oil, and
gasoline.
Substantial deposits of natural gas are associated with
Bahrain's oil fields. Before 1979, when the government
established the Bahrain National Gas Company (Banagas), an
estimated 3 million cubic meters per day of this gas were
being
vented to the atmosphere. Banagas opened a gas
liquefaction plant
that collected this gas and processed it into propane,
butane,
and naphtha. There are also large deposits of natural gas
in the
Khuff field, which is separate from the oil fields.
Banagas has
drilled more than fifteen wells to tap this gas, which is
used
for fuel to power the oil refinery, electric generators,
and the
water desalination plant. Some of the gas is reinjected
into the
oil fields to maintain reservoir pressure and stimulate
production. In 1990 Banagas estimated total natural gas
reserves
at 209 trillion cubic meters; daily production averaged
about 20
million cubic meters.
Background | | In 1783, the al-Khalifa family captured Bahrain from the Persians. In order to secure these holdings, it entered into a series of treaties with the UK during the 19th century that made Bahrain a British protectorate. The archipelago attained its independence in 1971. Bahrain's small size and central location among Persian Gulf countries require it to play a delicate balancing act in foreign affairs among its larger neighbors. Facing declining oil reserves, Bahrain has turned to petroleum processing and refining and has transformed itself into an international banking center. King HAMAD bin Isa al-Khalifa, after coming to power in 1999, pushed economic and political reforms to improve relations with the Shia community. Shia political societies participated in 2006 parliamentary and municipal elections. Al Wifaq, the largest Shia political society, won the largest number of seats in the elected chamber of the legislature. However, Shia discontent has resurfaced in recent years with street demonstrations and occasional low-level violence.
|
Location | | Middle East, archipelago in the Persian Gulf, east of Saudi Arabia
|
Area(sq km) | | total: 741 sq km land: 741 sq km water: 0 sq km
|
Geographic coordinates | | 26 00 N, 50 33 E
|
Land boundaries(km) | | 0 km
|
Coastline(km) | | 161 km
|
Climate | | arid; mild, pleasant winters; very hot, humid summers
|
Elevation extremes(m) | | lowest point: Persian Gulf 0 m highest point: Jabal ad Dukhan 122 m
|
Natural resources | | oil, associated and nonassociated natural gas, fish, pearls
|
Land use(%) | | arable land: 2.82% permanent crops: 5.63% other: 91.55% (2005)
|
Irrigated land(sq km) | | 40 sq km (2003)
|
Total renewable water resources(cu km) | | 0.1 cu km (1997)
|
Freshwater withdrawal (domestic/industrial/agricultural) | | total: 0.3 cu km/yr (40%/3%/57%) per capita: 411 cu m/yr (2000)
|
Natural hazards | | periodic droughts; dust storms
|
Environment - current issues | | desertification resulting from the degradation of limited arable land, periods of drought, and dust storms; coastal degradation (damage to coastlines, coral reefs, and sea vegetation) resulting from oil spills and other discharges from large tankers, oil refineries, and distribution stations; lack of freshwater resources (groundwater and seawater are the only sources for all water needs)
|
Environment - international agreements | | party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Wetlands signed, but not ratified: none of the selected agreements
|
Geography - note | | close to primary Middle Eastern petroleum sources; strategic location in Persian Gulf, through which much of the Western world's petroleum must transit to reach open ocean
|
Population | | 727,785 note: includes 235,108 non-nationals (July 2009 est.)
|
Age structure(%) | | 0-14 years: 25.9% (male 95,224/female 93,241) 15-64 years: 70.2% (male 292,941/female 217,729) 65 years and over: 3.9% (male 15,106/female 13,544) (2009 est.)
|
Median age(years) | | total: 30.1 years male: 33.2 years female: 26.7 years (2009 est.)
|
Population growth rate(%) | | 1.285% (2009 est.)
|
Birth rate(births/1,000 population) | | 17.02 births/1,000 population (2009 est.)
|
Death rate(deaths/1,000 population) | | 4.37 deaths/1,000 population (July 2009 est.)
|
Net migration rate(migrant(s)/1,000 population) | | 0.2 migrant(s)/1,000 population (2009 est.)
|
Urbanization(%) | | urban population: 89% of total population (2008) rate of urbanization: 1.8% annual rate of change (2005-10 est.)
|
Sex ratio(male(s)/female) | | at birth: 1.03 male(s)/female under 15 years: 1.02 male(s)/female 15-64 years: 1.34 male(s)/female 65 years and over: 1.12 male(s)/female total population: 1.24 male(s)/female (2009 est.)
|
Infant mortality rate(deaths/1,000 live births) | | total: 15.25 deaths/1,000 live births male: 17.81 deaths/1,000 live births female: 12.61 deaths/1,000 live births (2009 est.)
|
Life expectancy at birth(years) | | total population: 75.16 years male: 72.64 years female: 77.76 years (2009 est.)
|
Total fertility rate(children born/woman) | | 2.5 children born/woman (2009 est.)
|
Nationality | | noun: Bahraini(s) adjective: Bahraini
|
Ethnic groups(%) | | Bahraini 62.4%, non-Bahraini 37.6% (2001 census)
|
Religions(%) | | Muslim (Shia and Sunni) 81.2%, Christian 9%, other 9.8% (2001 census)
|
Languages(%) | | Arabic, English, Farsi, Urdu
|
Country name | | conventional long form: Kingdom of Bahrain conventional short form: Bahrain local long form: Mamlakat al Bahrayn local short form: Al Bahrayn former: Dilmun
|
Government type | | constitutional monarchy
|
Capital | | name: Manama geographic coordinates: 26 14 N, 50 34 E time difference: UTC+3 (8 hours ahead of Washington, DC during Standard Time)
|
Administrative divisions | | 5 governorates; Asamah, Janubiyah, Muharraq, Shamaliyah, Wasat note: each governorate administered by an appointed governor
|
Constitution | | adopted 14 February 2002
|
Legal system | | based on Islamic law and English common law; has not accepted compulsory ICJ jurisdiction
|
Suffrage | | 20 years of age; universal
|
Executive branch | | chief of state: King HAMAD bin Isa Al-Khalifa (since 6 March 1999); Heir Apparent Crown Prince SALMAN bin Hamad Al-Khalifa (son of the monarch, born 21 October 1969) head of government: Prime Minister KHALIFA bin Salman Al-Khalifa (since 1971); Deputy Prime Ministers ALI bin Khalifa bin Salman Al-Khalifa, MUHAMMAD bin Mubarak Al-Khalifa, Jawad al-ARAIDH cabinet: Cabinet appointed by the monarch elections: the monarchy is hereditary; prime minister appointed by the monarch
|
Legislative branch | | bicameral legislature consists of the Consultative Council (40 members appointed by the King) and the Council of Representatives or Chamber of Deputies (40 seats; members directly elected to serve four-year terms) elections: Council of Representatives - last held November-December 2006 (next election to be held in 2010) election results: Council of Representatives - percent of vote by society - NA; seats by society - al Wifaq (Shia) 17, al Asala (Sunni Salafi) 5, al Minbar (Sunni Muslim Brotherhood) 7, independents 11; note - seats by society as of February 2007 - al Wifaq 17, al Asala 8, al Minbar 7, al Mustaqbal (Moderate Sunni pro-government) 4, unassociated independents (all Sunni) 3, independent affiliated with al Wifaq (Sunni oppositionist) 1
|
Judicial branch | | High Civil Appeals Court
|
Political pressure groups and leaders | | Shia activists; Sunni Islamist legislators other: several small leftist and other groups are active
|
International organization participation | | ABEDA, AFESD, AMF, FAO, G-77, GCC, IAEA, IBRD, ICAO, ICC, ICCt (signatory), ICRM, IDA, IDB, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM (observer), IPU, ISO, ITSO, ITU, ITUC, LAS, MIGA, NAM, OAPEC, OIC, OPCW, PCA, UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO
|
Flag description | | red, the traditional color for flags of Persian Gulf states, with a white serrated band (five white points) on the hoist side; the five points represent the five pillars of Islam
|
Economy - overview | | With its highly developed communication and transport facilities, Bahrain is home to numerous multinational firms with business in the Gulf. Petroleum production and refining account for over 60% of Bahrain's export receipts, over 70% of government revenues, and 11% of GDP (exclusive of allied industries), underpinning Bahrain's strong economic growth in recent years. Aluminum is Bahrain's second major export after oil. Other major segments of Bahrain's economy are the financial and construction sectors. Bahrain is focused on Islamic banking and is competing on an international scale with Malaysia as a worldwide banking center. Bahrain is actively pursuing the diversification and privatization of its economy to reduce the country's dependence on oil. As part of this effort, in August 2006 Bahrain and the US implemented a Free Trade Agreement (FTA), the first FTA between the US and a Gulf state. Continued strong growth hinges on Bahrain's ability to acquire new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries. Unemployment, especially among the young, and the depletion of oil and underground water resources are long-term economic problems. The global financial crisis is likely to result in slower economic growth for Bahrain during 2009 as tight international credit and a slowing global economy cause funding for many non-oil projects to dry up. Lower oil prices may also cause Bahrain's budget to slip back into deficit.
|
GDP (purchasing power parity) | | $26.89 billion (2008 est.) $25.29 billion (2007 est.) $23.34 billion (2006 est.) note: data are in 2008 US dollars
|
GDP (official exchange rate) | | $21.24 billion (2008 est.)
|
GDP - real growth rate(%) | | 6.3% (2008 est.) 8.4% (2007 est.) 6.7% (2006 est.)
|
GDP - per capita (PPP) | | $37,400 (2008 est.) $35,700 (2007 est.) $33,400 (2006 est.) note: data are in 2008 US dollars
|
GDP - composition by sector(%) | | agriculture: 0.4% industry: 66.2% services: 33.3% (2008 est.)
|
Labor force | | 557,000 note: 44% of the population in the 15-64 age group is non-national (2008 est.)
|
Labor force - by occupation(%) | | agriculture: 1% industry: 79% services: 20% (1997 est.)
|
Unemployment rate(%) | | 15% (2005 est.)
|
Population below poverty line(%) | | NA%
|
Household income or consumption by percentage share(%) | | lowest 10%: NA% highest 10%: NA%
|
Investment (gross fixed)(% of GDP) | | 26.6% of GDP (2008 est.)
|
Budget | | revenues: $6.934 billion expenditures: $5.612 billion (2008 est.)
|
Inflation rate (consumer prices)(%) | | 7% (2008 est.) 3.3% (2007 est.)
|
Stock of money | | $NA (31 December 2008) $4.169 billion (31 December 2007)
|
Stock of quasi money | | $NA (31 December 2008) $10.63 billion (31 December 2007)
|
Stock of domestic credit | | $NA (31 December 2008) $10.32 billion (31 December 2007)
|
Market value of publicly traded shares | | $21.18 billion (31 December 2008) $28.13 billion (31 December 2007) $21.12 billion (31 December 2006)
|
Economic aid - recipient | | $103.9 million (2004)
|
Public debt(% of GDP) | | 28.7% of GDP (2008 est.) 63.8% of GDP (2004 est.)
|
Agriculture - products | | fruit, vegetables; poultry, dairy products; shrimp, fish
|
Industries | | petroleum processing and refining, aluminum smelting, iron pelletization, fertilizers, Islamic and offshore banking, insurance, ship repairing, tourism
|
Industrial production growth rate(%) | | 6.3% (2008 est.)
|
Current account balance | | $2.257 billion (2008 est.) $2.907 billion (2007 est.)
|
Exports | | $17.49 billion (2008 est.) $13.79 billion (2007 est.)
|
Exports - commodities(%) | | petroleum and petroleum products, aluminum, textiles
|
Exports - partners(%) | | Saudi Arabia 3.4%, India 2.7%, UAE 2.2% (2008)
|
Imports | | $14.25 billion (2008 est.) $10.93 billion (2007 est.)
|
Imports - commodities(%) | | crude oil, machinery, chemicals
|
Imports - partners(%) | | Saudi Arabia 26.7%, Japan 8.9%, US 7.8%, China 6.2%, Germany 4.8%, South Korea 4.7%, UK 4.5% (2008)
|
Reserves of foreign exchange and gold | | $3.803 billion (31 December 2008 est.) $4.101 billion (31 December 2007 est.)
|
Debt - external | | $10.33 billion (31 December 2008 est.) $7.858 billion (31 December 2007 est.)
|
Stock of direct foreign investment - at home | | $15.01 billion (31 December 2008 est.) $13.31 billion (31 December 2007 est.)
|
Stock of direct foreign investment - abroad | | $9.34 billion (31 December 2008 est.) $7.72 billion (31 December 2007 est.)
|
Exchange rates | | Bahraini dinars (BHD) per US dollar - 0.376 (2008 est.), 0.376 (2007), 0.376 (2006), 0.376 (2005), 0.376 (2004)
|
Currency (code) | | Bahraini dinar (BHD)
|
Telephones - main lines in use | | 220,000 (2008)
|
Telephones - mobile cellular | | 1.4 million (2008)
|
Telephone system | | general assessment: modern system domestic: modern fiber-optic integrated services; digital network with rapidly growing use of mobile-cellular telephones international: country code - 973; landing point for the Fiber-Optic Link Around the Globe (FLAG) submarine cable network that provides links to Asia, Middle East, Europe, and US; tropospheric scatter to Qatar and UAE; microwave radio relay to Saudi Arabia; satellite earth station - 1 (2007)
|
Internet country code | | .bh
|
Internet users | | 402,900 (2008)
|
Airports | | 3 (2009)
|
Pipelines(km) | | gas 20 km; oil 32 km (2008)
|
Roadways(km) | | total: 3,498 km paved: 2,768 km unpaved: 730 km (2003)
|
Ports and terminals | | Mina' Salman, Sitrah
|
Military branches | | Bahrain Defense Forces (BDF): Ground Force (includes Air Defense), Naval Force, Air Force, National Guard
|
Military service age and obligation(years of age) | | 17 years of age for voluntary military service; 15 years of age for NCOs, technicians, and cadets; no conscription (2008)
|
Manpower available for military service | | males age 16-49: 210,938 females age 16-49: 170,471 (2008 est.)
|
Manpower fit for military service | | males age 16-49: 171,004 females age 16-49: 144,555 (2009 est.)
|
Manpower reaching militarily significant age annually | | male: 6,612 female: 6,499 (2009 est.)
|
Military expenditures(% of GDP) | | 4.5% of GDP (2006)
|
Disputes - international | | none
|
Trafficking in persons | | current situation: Bahrain is a destination country for men and women trafficked for the purposes of involuntary servitude and commercial sexual exploitation; men and women from Africa, South Asia, and Southeast Asia migrate voluntarily to Bahrain to work as laborers or domestic servants where some face conditions of involuntary servitude such as unlawful withholding of passports, restrictions on movements, non-payment of wages, threats, and physical or sexual abuse; women from Thailand, Morocco, Eastern Europe, and Central Asia are trafficked to Bahrain for the purpose of commercial sexual exploitation tier rating: Tier 2 Watch List - Bahrain is on the Tier 2 Watch List for failing to show evidence of increased efforts to combat human trafficking, particularly efforts that enforce laws against trafficking in persons, and that prevent the punishment of victims of trafficking; during 2007, Bahrain passed a comprehensive law prohibiting all forms of trafficking in persons; the government also established a specialized anti-trafficking unit within the Ministry of Interior to investigate trafficking crimes; however, the government did not report any prosecutions or convictions for trafficking offenses during 2007, despite reports of a substantial problem of involuntary servitude and sex trafficking (2008)
|
Electricity - production(kWh) | | 10.25 billion kWh (2007 est.)
|
Electricity - production by source(%) | | fossil fuel: 100% hydro: 0% nuclear: 0% other: 0% (2001)
|
Electricity - consumption(kWh) | | 10.1 billion kWh (2007 est.)
|
Electricity - exports(kWh) | | 0 kWh (2008 est.)
|
Electricity - imports(kWh) | | 0 kWh (2008 est.)
|
Oil - production(bbl/day) | | 48,520 bbl/day (2008 est.)
|
Oil - consumption(bbl/day) | | 38,000 bbl/day (2008 est.)
|
Oil - exports(bbl/day) | | 238,300 bbl/day (2007 est.)
|
Oil - imports(bbl/day) | | 228,400 bbl/day (2007 est.)
|
Oil - proved reserves(bbl) | | 124.6 million bbl (1 January 2009 est.)
|
Natural gas - production(cu m) | | 12.64 billion cu m (2008 est.)
|
Natural gas - consumption(cu m) | | 12.64 billion cu m (2008 est.)
|
Natural gas - exports(cu m) | | 0 cu m (2008)
|
Natural gas - proved reserves(cu m) | | 92.03 billion cu m (1 January 2009 est.)
|
HIV/AIDS - adult prevalence rate(%) | | 0.2% (2001 est.)
|
HIV/AIDS - people living with HIV/AIDS | | fewer than 600 (2007 est.)
|
HIV/AIDS - deaths | | fewer than 200 (2003 est.)
|
Literacy(%) | | definition: age 15 and over can read and write total population: 86.5% male: 88.6% female: 83.6% (2001 census)
|
School life expectancy (primary to tertiary education)(years) | | total: 15 years male: 14 years female: 16 years (2006)
|
Education expenditures(% of GDP) | | 3.9% of GDP (1991)
|