Gulf Gas Strategies
The workshop aims at setting up a high-standard knowledge and research platform for academics, scholars, decision-makers and any other interested person or body on the current and prospective economic and political function of the Gulf energy producers in supplying the world’s markets with their needs for gas (and other forms of energy). It will also shed light on the current and prospective potential and capabilities of the Gulf gas producer ...
Abstract
The workshop aims at setting up a high-standard knowledge and research platform for academics, scholars, decision-makers and any other interested person or body on the current and prospective economic and political function of the Gulf energy producers in supplying the world’s markets with their needs for gas (and other forms of energy). It will also shed light on the current and prospective potential and capabilities of the Gulf gas producers and exporters and their future responsibilities for meeting the growing demand for gas, not only worldwide, but even inside their countries within the global context of energy transition. In addition, the workshop shall highlight the importance of the gas sector to the economies of various Gulf countries and its impacts on other political, economic and social activities. The issues related to social subsidies and public financial support, their impacts on both the development and demand of gas, as well as the urgent need to diversify the rentier economies in the region away from fossil fuels would enhance the discussions and the resulting research and studies.
Description and Rationale
Context
The Gulf states hold large proven reserves and undiscovered resources of natural gas, both in its conventional and unconventional form, and include both big actual and potential gas producers as well as large gas consumers. Natural gas in the Gulf is the subject of different exploitation and development strategies, dependent on many factors, such as the gas reserves and resources in the region, and the trends regulating gas production and demand there.
On the reserves and resources side, volumes and forms of gas reserves and resources within the Gulf, and the resulting gas aspirations and aims, differ from one country to another, with natural gas currently viewed through a number of diverse strategies such as using it domestically in order to release more crude oil and petroleum products for export, or utilizing it for building and developing a strong petrochemical and fertilizer industrial base.
Meanwhile, many nations in the Gulf have been planning at or actually enhancing their gas production with the aim of rising their export share in the global energy market at a time when their oil output (and revenues) are limited either by production quotas or technical and geological capacities. Some other Gulf countries are using their more modest gas reserves to moderate their growing dependence on imported petroleum products and/or natural gas (in piped or liquefied form), thus minimizing their fuel imports and helping to achieve as much energy self-sufficiency as possible.
When it comes to the trends of gas production and demand, there are general ones in the Gulf, but also specific trends related to the national cases. Many factors are affecting gas production in the area, but it is clear that in the countries with mainly associated gas reserves, there is a growing need to complement the limited output of this gas and to develop other gas sources (non-associated/unconventional) in order to fulfill the growing demand. Here, the local prices of gas have clear impacts on both the development and production of non-associated and unconventional gas, and on the demand of gas within the country. The other options for Gulf countries to fulfill their growing gas deficit is to increasingly rely on import.
In fact, the Gulf region, which recently increased its share in the world gas market, has been playing a growing gas consuming and importing role. In fact, at a time when huge volumes of liquefied natural gas (LNG) have been exported from the region, many countries there, in deep deficit of gas, started importing piped gas from neighboring states and LNG from the international market. It is important in this context to analyze the actual and future features of the local gas demand in the Gulf. In addition to the impacts of its price, demand for natural gas in the Gulf has been affected by the availability of this source of energy, either locally or from regional and global markets through pipelines or in liquefied form.
Gas demand is also shaped based on the availability and economics of other sources of energy, especially when comparing its price with those of alternative fuels. Most Gulf countries have recently scaled up their interest in renewable sources of energy, especially in wind and solar power generation, which offer the highest technological and market maturity. The experience of the UAE (Abu Dhabi) in developing nuclear energy is to be reviewed, especially its impacts on the gas demand. But what are the factors favoring the local use of gas, including the various reasons for using gas rather than oil and petroleum products in an area living on a “sea of oil” (with the Gulf holding around 48% of the global proven oil reserves)? One reason could be the growing environmental awareness in the region, and the much better and efficient economics of using gas as fuel for generating power desalinating water. Gas is also competently used as feedstock in many vital industrial applications, especially for petrochemicals and fertilizers.
Gulf Research Meeting
