MENASA comprises 22 countries, encompasses over 25% of the world’s population, and
has a combined GDP of over US$5 trillion.
The Gulf Region, comprised of the six countries of the GCC plus Iran and Iraq, holds 56% and 40% of the world’s conventional oil and gas proven reserves.
Capital requirements for energy investments in the Gulf Region during 2010 to 2014 are forecast at $520 billion.
The United Arab Emirates holds the world’s sixth largest proven oil reserves of approximately 98 billion barrels and seventh largest gas reserves of 215 trillion cubic feet.
World energy consumption is projected to increase by 50% from 2005 to 2030, and fossil fuels (oil, gas and coal) will continue to supply much of the energy used worldwide.
The Gulf Region countries collectively possess some 54% and 40%, respectively, of the world’s conventional oil and gas proved reserves, and large additional amounts of unproved and undiscovered reserves.
In 2010, the Gulf Region produce2 over 25.2 million barrels of oil per day, and 44.6 billion cubic feet of natural gas per day, accounting for over 30% of the world’s oil production, 15% of gas production, and 32% of Liquefied Natural Gas (LNG) exports.
According to International Energy Outlook projections3, world energy consumption is projected to increase by over 50% by 2030 from 2008 figures, an average increase of 1.6% p.a. Fossil fuels (oil, gas and coal) will continue to supply much of the energy used worldwide. Global demand for liquid fuels is expected to grow by only 1.0% p.a. across this period, and the total share will decline from 34% (in 2008) to 29% (in 2035). We expect that to meet the world’s growing energy demand, the Gulf Region’s share of world oil production will increase above 30% as Iraq returns to full production in the coming years.
We expect that to meet the world’s growing energy demand, the Gulf Region’s share of world oil production will increase above 30% as Iraq returns to full production in the coming years.
Global demand for natural gas has risen at a rate even greater than that of crude oil, experiencing an average4 increase in demand of 2.7% per year over the 1973-2010 period compared to 0.9%5 for crude oil over the same period. Natural gas consumption worldwide is forecasted to continue increasing at an average rate of 1.6% annually up to 2035, as compared with a continuing 1.0% per year for liquid fuels6.
The expansion of the gas industry in the Gulf Region itself will continue to be immense, due to the rapidly growing power requirement of the GCC population and increasing substitution of gas as a primary fuel for power generation around the world due to lower cost of natural gas on an equivalent basis, efficiency considerations, and environmental considerations.