DOHA: Qatar’s natural gas production exceeded 7 trillion cubic feet mark in 2013. This includes 77 million tonnes of LNG exported to more than 25 countries, pipeline gas exports to the UAE and Oman, and domestic consumption, H E Dr Mohamed bin Saleh Al Sada, Minister of Energy and Industry said yesterday.
Delivering the key note address at the two-day Brookings Doha Energy Forum 2014, Dr Al Sada said Qatar’s prominent position in the global energy market is set to remain for years to come. “The State of Qatar is well placed to meet the increasing demand for gas….. We are also committed to continue meeting our obligations as a reliable energy producer, as a partner in development, and as an active player in ensuring market stability”.
Worldwide energy consumption is expected to increase by about 50 percent between now and 2035. Almost 90 percent of such growth is expected to come from non-OECD countries, led by emerging economies like China and India. Similarly, global LNG demand, which is growing at an average of about five percent per annum, is expected to almost double from around 240 million tonnes per annum in 2013, to 465 million tonnes by 2025.
The Minister who noted that a double digit price per barrel of oil is history said a number of new challenges have emerged in the form of geopolitical developments impacting energy markets. Explaining the changing global energy landscape he said America’s growing production of shale gas and crude oil will reshape the US energy economy, when crude oil production reaches 9.6 million barrels per day by the end of 2016, which is the historical high achieved back in 1970.
“The EIA expects this tight crude oil production to level off and then slowly decline after 2020. On the other hand, it foresees that natural gas production will grow steadily, with a 56 percent increase between 2012 and 2040, when production reaches 37.6 trillion cubic feet.”
Currently, there are a number of gas export projects in the western parts of Canada at various stages of permission and development. China is sitting on the world’s largest shale reserves. In pursuit of a shale gas boom, China is actively engaged in building a capacity target of 230 billion cubic feet per year, as early as next year. Australia has an estimated 819 trillion cubic feet of gas reserves; and which is moving forward with efforts to raise its existing LNG capacity within the next 3-4 years. In addition to three operating LNG developments, Australia has seven new projects in various planning and implementation stages, costing more than $200bn. All these could impact the changing characteristics of global energy landscape.
However, different set of elements are increasing the geopolitical pressures causing energy concerns. But it is not clear yet when, and how hard this situation could affect energy markets. “But as we watch these geopolitical developments, one can not overlook the fact that worldwide energy consumption is expected to increase by about 50 percent between now and 2035. Almost 90 percent of such growth is expected to come from non-OECD countries, led by emerging economies like China and India.”
This year’s Brookings Doha Energy Forum takes on the theme “Energy Markets in Motion: How Changes in Geopolitics, Political Economy, and Markets Alter the Energy Landscape.”
HE Sheikh Mohammed Bin Abdulrahman bin Jassim Al Thani, Minister’s Assistant for International Cooperation Affairs, Ministry of Foreign Affairs, delivered the introductory speech. Syed Mohammad Hossein Adeli, Secretary General of the Gas Exporting Countries Forum and Adnam Al Janabi, Chairman, Oil and Energy Parliamentary Committee, Iraq were among others who spoke at the opening session.