Burning Less Oil At Home Will Help Saudi Exports And Aramco IPO

One industry source said Riyadh might not need to raise output to the record high of July last year as a result of the reforms. "Demand internally will not be high," the source said.

The reduction in domestic oil demand comes with an added bonus as the government plans to sell a 5 percent stake of Aramco, in what is expected to be the world's biggest initial public offering of shares worth $100 billion.

The sources said that a reduction in oil usage, while not a specific objective for the IPO, is part of Aramco's plan to improve efficiency and secure the best possible listing price.

"More volume (exported) abroad means more revenue for investors," said another industry source. "That should help Aramco's valuation."

(Additional reporting by Alex Lawler in London; Editing by Edmund Blair)