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By Anthony DiPaola, Eduard Gismatullin and Wael Mahdi - Dec 6, 2011 5:39 AM ET
By Anthony DiPaola, Eduard Gismatullin and Wael Mahdi - Dec 6, 2011 5:39 AM ET
The Middle East will need more help from international investors to keep the title of world’s biggest oil and gas producer because its remaining deposits are harder to get at.
Technology is the “key to prolonging the life span of the reservoirs, and we’ve been doing this with our partners for a long time,” Mohamed Al-Hamli, oil minister of the United Arab Emirates, said yesterday at the World Petroleum Congress in Doha, Qatar. “We are forced to go down the road of enhanced oil recovery and using more advanced technology.”
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Rising consumption of crude oil and natural gas at home will put pressure on Saudi Arabia, the U.A.E. and other governments to keep production high enough to maintain export revenue that finances government spending.
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Executives from international and national oil companies are meeting with state officials during the four-day World Petroleum Congress this week in Qatar. The chief executive officers of BP Plc (BP/), Shell, Exxon and ConocoPhillips spoke today. BP’s Robert Dudley said the energy industry needs to add the equivalent of a large, Saudi Arabia-size producer each year to offset the decline in output capacity at existing oil fields.
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Occidental together with state-run Abu Dhabi National Oil Co. is investing $10 billion to bring on stream the Shah gas field by neutralizing deadly hydrogen sulfide, which is also known as sour gas.
The Shah geology is similar to that of Kidan, a deposit Shell is exploring together with Saudi Arabian Oil Co., also known as Saudi Aramco, in the kingdom’s desert area known as the Empty Quarter. In Iraq, Shell and partners agreed last month to invest $17 billion to capture natural gas from its oil fields and reduce burn-off.
Companies will also focus on tapping unconventional gas fields. In Oman, BP expects to spend at least $15 billion to develop so-called tight gas, locked in a hard-to-break rock that restricts the fuel’s flow.
Saudi Aramco, the world’s largest crude exporter, is looking for a foreign partner to develop shale. Unconventional gas resources will help Saudi Arabia meet rising domestic energy demand, Khalid Al-Falih, the company’s chief executive officer, said today in Doha.
“Unconventional gas will help these countries get the gas they need badly, reduce the use of oil in the power sector, and reduce the threat of reducing oil exports in the future,” to meet energy needs, said Anas Alhajji, chief economist for Irving, Texas-based NGP Energy Capital Management LLC, which manages $10 billion in assets.
Technology is the “key to prolonging the life span of the reservoirs, and we’ve been doing this with our partners for a long time,” Mohamed Al-Hamli, oil minister of the United Arab Emirates, said yesterday at the World Petroleum Congress in Doha, Qatar. “We are forced to go down the road of enhanced oil recovery and using more advanced technology.”
[..]
Rising consumption of crude oil and natural gas at home will put pressure on Saudi Arabia, the U.A.E. and other governments to keep production high enough to maintain export revenue that finances government spending.
[..]
Executives from international and national oil companies are meeting with state officials during the four-day World Petroleum Congress this week in Qatar. The chief executive officers of BP Plc (BP/), Shell, Exxon and ConocoPhillips spoke today. BP’s Robert Dudley said the energy industry needs to add the equivalent of a large, Saudi Arabia-size producer each year to offset the decline in output capacity at existing oil fields.
[..]
Occidental together with state-run Abu Dhabi National Oil Co. is investing $10 billion to bring on stream the Shah gas field by neutralizing deadly hydrogen sulfide, which is also known as sour gas.
The Shah geology is similar to that of Kidan, a deposit Shell is exploring together with Saudi Arabian Oil Co., also known as Saudi Aramco, in the kingdom’s desert area known as the Empty Quarter. In Iraq, Shell and partners agreed last month to invest $17 billion to capture natural gas from its oil fields and reduce burn-off.
Companies will also focus on tapping unconventional gas fields. In Oman, BP expects to spend at least $15 billion to develop so-called tight gas, locked in a hard-to-break rock that restricts the fuel’s flow.
Saudi Aramco, the world’s largest crude exporter, is looking for a foreign partner to develop shale. Unconventional gas resources will help Saudi Arabia meet rising domestic energy demand, Khalid Al-Falih, the company’s chief executive officer, said today in Doha.
“Unconventional gas will help these countries get the gas they need badly, reduce the use of oil in the power sector, and reduce the threat of reducing oil exports in the future,” to meet energy needs, said Anas Alhajji, chief economist for Irving, Texas-based NGP Energy Capital Management LLC, which manages $10 billion in assets.