$68 billion contracts to help gas overtake oil
UAE, Qatar and Saudi Arabia will award contracts worth $68b for gas
Gas is forecasted to overtake oil in demand after 2025, with 50% of all energy demand coming from gas in 2040.
Most National Oil Companies (NOCs) in the Middle East already have multi-billion dollar investment plans for gas exploration and production. GCC states, particularly the UAE, Qatar and Saudi Arabia, plan to award contracts worth over $68bn during the next five years to raise gas production.
"Although the share of demand for oil and gas is set to rise, it is important to note that alternative energy sources such as nuclear, wind, solar and biofuel will also take on an increasingly significant role in meeting the world's energy needs in the future," said Kenneth McKellar, Energy and Resources leader at Deloitte in the Middle East.
This and other trends, along with challenges, are explored in the 8th edition white paper released by Deloitte titled ‘Middle East Energy and Resources: Managing scarcity for the future’.
Certainly NOCs also clearly see sustainability and environmental impact as key facets of the oil and gas business, and have invested heavily in these areas,” said McKellar.
The Deloitte whitepaper draws on the example of Saudi Aramco, which is currently conducting a number of environmental studies in wasteland reclamation, biodegradation of hydrocarbon wastes, and even the development of microorganism technology to remove impurities in oil fields.
Kuwait Petroleum Corporation (KPC) Energy Ventures, through an active investment program, is aiming to promote and influence the development of new technologies that make oil more efficient and environmentally-friendly.
Facing the challenges
Deloitte’s whitepaper also explores the challenges facing the energy industry, which include the serious issue of skills shortages. This is a global problem but even more pronounced in the Middle East where students across the region are choosing to pursue business careers outside of technology, physical sciences and technical process industries.
These trends are stimulating high demand for a powerful combination of technology and talent in the Middle East. The restructuring of the existing talent pool, with preference for local hires rather than expensive expatriates, is yet another obstacle to bringing in the required skills in the short run, the paper outlines.