Gulf Region

The global requirement for natural gas on the other hand has risen at a rate even greater than that for crude oil, experiencing an average increase in demand of 2.2% per year over the 1973-2007 period compared to 1.4% for crude oil over the same period. Natural gas consumption worldwide is forecasted to increase at an average rate of 1.7% annually up to 2030, as compared with 1.2% per year for oil. The recent and projected future expansion of the gas industry in the Gulf Region has been and will continue to be immense, given the rapidly growing power generation requirements right across the region and the increasing substitution of gas as a primary fuel due to cost and efficiency considerations as well as environmental considerations.

Naturally the realisation of oil and gas related projects will require a large amount of efforts and capital investment. The International Energy Agency (IEA) predicts that $16 trillion will be needed to meet global energy demand to 2030, a good proportion of this in the Middle East. Arab Petroleum Investment Corporation (APICORP) review of energy investments in the Arab world over the period 2009-2013 has underscored capital requirements of some $520 billion. Reflecting the distribution of hydrocarbon resources, most of the energy investments will be concentrated in Gulf region. Of the expected $520 billion, the oil supply chain accounts for 46% the gas chain 32% and the oil or gas fuelled power generation sector for the remaining 22%.

• The Gulf region, in addition to Iran and Iraq, hold 60.6% and 40.8% of the world’s conventional oil and gas proven reserves.
• 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 realisation of oil and gas related projects will require significant investment. Capital requirements for energy investments in the Gulf region during 2009 to 2013are forecast at $520 billion.