UTL_FILE provides file access both on the client side and on the server side. When run on the server, UTL_FILE provides access to all operating system files that are accessible from the server. On the client side, as in the case for Forms applications, UTL_FILE provides access to operating system files that are accessible from the client.[url http://docs.oracle.com/cd/E11882_01/server.112/e26088/statements_5007.htm#SQLRF01207]CREATE DIRECTORY
You must have CREATE ANY DIRECTORY system privilege to create directories.SQL*Plus runs server side so you cannot use utl_file to write files to your local drive unless the server itself can see your local drive.