When security situations in the Gulf region become tense, the Strait of Hormuz gains the world's attention because it is the most important sea passage for oil supply.

During the 15th annual Energy Conference held at the Emirates Center for Strategic Studies and Research (ECSSR) recently, many points of view were discussed about the future of energy security in the Gulf region, which has become a global issue viewed by influential countries as a strategic issue.

Therefore, these countries try to ensure that oil supplies meet their increasing demands, especially since oil and gas alternatives, including the biofuel, are still far from being a competitor to hydrocarbon energy sources.

Based on this fact, several viewpoints were discussed, through which contradicting messages were conveyed.

These messages reflect the importance of the discussions related to the reality of energy security in the Gulf region.

During the first session, the representative of the Global Energy Council gave a presentation on oil reserves saying that they will be sufficient for the next 100 years, while natural gas is expected to last longer.

The study also said that oil will maintain its share in the global energy balance until 2040. This information contradicts all published data by global oil companies which are fully aware of oil and gas reserves in the world.

Reserves

According to a report by British Petroleum, the discovered oil reserves will cover the world's needs until 2040, while other reports say the contribution of solar energy in the balance of global energy will increase from less than three to 30 per cent in 2040.

On the event's third day, Professor Philip Andrews from the UK, said GCC countries should maintain high production level and low prices so that no alternative should be considered, which simply means the bleeding of oil resources at low prices.

Andrews forgot to mention that Britain was one of the countries that benefitted most from the high prices of North Sea oil.

At the same time, Dr Paul Stevens from the UK also expressed a proper strategic point of view by calling on GCC countries to maintain a reserve production capacity to benefit from when prices rise in the future.

Expertise

Also, Evan Sandria from Norway, an oil country with important expertise in the field of optimal investment of oil fortunes, stressed the need for Gulf oil companies to take strategic reactions after their countries' inclination to develop other sources of energy, such as solar and nuclear powers.

Other practical points of view were discussed as well, among which was the one raised by Professor Nodry Simona from Federal Russia, who called on producing countries to set their own oil pricing system to curb harmful speculations in global oil markets and ensure a minimum level of stability in these markets.

Among these opinions was the viewpoint of concerned countries, in which the future of development relies on good management of oil resources.

Inevitable

These countries realise that oil depletion is inevitable and thus look for alternative power sources and developing renewable energy sources, especially solar power, which is abundant in the region.

They also have strategic projects such as Masdar city in Abu Dhabi and the project of the Middle East Nuclear Energy Infrastructure Institute in Qatar.

Consequently, the region's countries now have a vision for energy security and the future of energy in general, while benefitting from various views that fulfill the interest of GCC countries.

This was the point expressed by Dr Jamal Sanad Al Suwaidi, Director General of ECSSR, at the closing session when he pointed out that the conference was an attempt to discuss the challenges facing energy security.

This attempt aims to support the efforts of decision makers with regard to guaranteeing the flow of energy for the sake of producers and consumers, which means ensuring that power supplies are stable to serve development in GCC countries.

 

Dr Mohammad Al Asoomi is a UAE economic expert.