Abu Dhabi: Energy demand worldwide will be met through hydrocarbon sources by 75.5 per cent in spite of global energy mix which many countries are heading to in the coming 20 years, said Abbas Neqi, Secretary General of the Organisation of Arab Petroleum Exporting Countries (OAPEC) in a meeting of Arab and Latin American officials which was held in Abu Dhabi on Wednesday at the sidelines of the World Future Energy Summit.
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“It is expected that oil and gas will form 51 per cent of energy consumption by 2035 and that global demand will rise by 0.5 per cent annually from the period 2011-2035. The demand in the Middle East and Africa on oil is expected to increase in the same period by 1.4 per cent and 1.6 per cent respectively and in Latin America by 0.9 per cent,” said Al Neqi in the meeting which will result in the signing on a declaration of cooperation between Arab countries and Latin America.
He added that demand on gas will increase by 1.6 per cent in the Middle East and by 2.2 per cent in Africa and Latin America. He expected that the international demand for gas will reach 1,648 billion cubic metres by 2035.
“Gas production will increase from 3,284 billion cubic metres currently to 4.955 billion cubic metres in 2035,” Al Neqi pointed out, adding that the two blocs: Arab and Latin America will contribute by 27 per cent of this increase.
Al Neqi remarked: “International investment requirements in oil industries from 2011-2035 are estimated at $10.2 trillion and that the Middle East and Latina America will contribute by 10.5 per cent and 16.5 per cent of the overall investments respectively.”
He explained that the investments in gas will reach $8.67 trillion, the Middle East and Latin America’s contribution will amount to $5.4 per cent and 6.1 per cent respectively.
Saudi Arabia produced 9.7 million barrels a day (bpd) of crude oil since October last year and its current production is still similar to that of October, 2012 , down by 100,000 barrels per day of July 2012, a Saudi official said.
Oil reserves
Arab crude oil reserves amounted to 714.4 billion barrels by end of 2012, consisting 48.2 per cent of the world reserves which stood at 1481.5 bilion barrels while Latin America’s crude oil reserves amounted to 326.6 billion barrels, forming 22 per cent of the world reserves, said
“The production of crude oil in the Arab countries in 2012 reached 22.1 million barrels per day, 31.4 per cent of the world production which is 70.4 million barrels per day, to rank first amongst other oil producing blocs,” said Al Neqi.
On the other hand, he remarked, Latin America, took 10 per cent share of the world production as it produced 7.1 million barrels per day, ranking fifth amongst oil producing blocs.
Al Neqi said that the contribution of the oil producing countries in the Arab world to the world production is “deemed moderate compared to their reserves.
Oil consumption in the Arab world
In terms of consumption, Al Neqi said: “The local consumption of oil in the Arab world is 6.2 million barrels per day, 7 per cent of the world consumption while Latin Americas consumption is estimated at 5.2 million barrels per day, 5.9 per cent of world consumption.”
He added that the local consumption constitutes only 28 per cent of the overall production of oil in the Arab world.
“The majority of crude Arab oil production goes to external markets while 73 per cent of Latin America’s oil production is locally consumed,” said Al Neqi.
Gas reserves
Arab gas reserves reached 53.9 trillion cubic metre, 27.5 per cent of world resrves which is estimated at 196.2 trillion cubic metres while Latin America’s share was 3.6 of the global gas reserves, 7.1 trillion cubic metres, he said.
“As per consumption of natural gas, the gas consumption in the Arab world is estimated at 297.7 billion cubic metres, 8.7 per cent of the world consumption while Latin America’s consumption of natural gas stood at 122.2 billion cubic metres, 3.8 per cent of the world consumption,” said Al Neqi.
It is clear that the Arab nations have surplus exports of natural gas which is 165.5 billion cubic metres while there is shortage in exports in Latin America estimated at 7.6 billion cubic metres.
