Arab countries committed to energy stability

Abu Dhabi: Arab countries are committed to maintaining stability in global energy markets, senior officials representing the oil and natural gas industry in the region said at a conference in the capital yesterday.

“Without doubt Arab countries are committed to reinforce their role as major oil and gas producers. Fossil fuels are the major source of energy and will continue to provide the largest percentage of the world energy mix for decades to come,” said Dr Matar Al Neyadi, Undersecretary at the UAE’s Ministry of Energy.

Abbas Al Naqi, secretary-general of the Organisation of Arab Petroleum Exporting Countries (OAPEC), said though Arab countries’ crude oil reserves are estimated to constitute about 58 per cent of the total global oil availability, Arab countries produced only 31 per cent of the world’s crude oil, according to 2011 data.

Al Naqi said though the Arab countries’ gas reserves constitute more than 28 per cent of the total world natural gas reserves, the Arab marketed gas share was only 14.5 per cent of the world gas production in 2010.

Tangible role

Separately, Fayez Al Mezel, senior strategic planner at Kuwait Oil Company (KOC), told Gulf News that Kuwait will be playing a tangible role to maintain prices if there is any oil supply shortage at the world market due to sanctions on Iran.

Al Mezel said that Kuwait’s oil production capacity currently stood at 3 million barrels per day (bpd) and the country is targeting to increase its production.

“Kuwait is planning to increase its oil production capacity from 3 million (bpd) to 4 (bpd) by 2020 to meet rapidly soaring international, regional and local demand for oil. We also aim to sustain the higher capacity level until 2030,” Al Mezel said.

OAPEC studies showed that oil crude oil reserves are estimated at 712 billion barrels and the 55 trillion cubic metres of natural gas.

The studies show that for the near future increases in energy needs will continue to be met from fossil fuels (oil, gas and coal) with a world share of 75 per cent of the global energy mix coming from the Middle East and North Africa.

“Petroleum is one of the most important sources of national income in several Arab countries, and consequently generates revenue for development and investment in other sectors of the national economy. It is through petroleum that we aspire to diversify our economy to avoid complete dependence on this sole sector as the only source of income,” Al Neyadi said.

“Increased production capacity is vital to satiate an energy hungry world, but sensible energy consumption coupled with innovative technology are necessary to conserve oil reserves for future generations,” he added.