Application of innovative technologies and cooperation between governments, national oil companies and global oil enterprises will be imperative for the success of GCC oil and gas producers’ ambitious plans to expand capacity over the next 10-15 years.
Major Gulf producers have announced plans to increase capacity by more than 50 per cent by 2020, equivalent to an unprecedented average of 1 million barrels/day of net productive capacity per year. These plans take on new significance in light of increasing global energy demand and worldwide economic growth.
Speaking at the Middle East Petroleum and Gas Conference held in Dubai, Steve Peacock, President of Exploration and Production at BP Middle East and South Asia, said: “According to the latest BP Statistical Review of World Energy, some 60 per cent of global oil reserves and 40 per cent of global gas reserves are located in the Middle East. With global energy demand rising fast, and domestic demand spurred by economic growth and large scale commercial and industrial projects, the world, as well as this region, is relying on the Middle East’s ability to expand production.”
Peacock further emphasised that capacity growth is not only about developing new projects, but also maximising recovery from existing fields with the aid of technology. The BP President then went on to explain that international oil companies have significant experience in these areas, and the challenge of bringing more oil to market presents an opportunity for governments and industry to forge partnerships in applying best practices and transferring knowledge gained by international oil companies.
“Partnerships between public and private enterprise are essential for oil producing nations in realising their ambitions. Regionally, Oman’s recent tight gas offering and Abu Dhabi’s current sour gas tender are two clear examples of far sighted leadership that recognizes the wisdom of progressing the national agenda without relinquishing control of the national resources,” added Peacock.


Last update on: 18-4-2007