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UAE plans oil output expansion

ABU DHABI - UAE is the most expanded Gulf country in the Oil and Gas industry sector with a lots of diversifications and plans to increase its oil production to around 3.7 million bpd towards the year 2010 injecting more than US$10 billion, said Hasan Marzooqi, Deputy General Manager, Abu Dhabi Liquefaction Company, (Adgas).

Speaking at the second day of the 9th Annual Energy Conference, Gulf Oil in the Aftermath of the Iraq War - Strategies and Policies, Al Marzooqi said, "The UAE is has a adopted excellent policies to maintain its leading distinguished position among the Gulf oil producers achieving great success and over years and planning to increase its oil and gas production by investing more in the future."

"The Oil and Gas production policies in the UAE have been chalked out very carefully to cater the need of the domestic economy and the world's need for oil products."

Vahan Zanoyan, President and CEO, PFC Energy, US, said: "The strategic challenges facing energy -sector decision makers in the Gulf revolve around realities and pressures at the domestic, regional and global levels."

"At the domestic level, there are two broad and fundamental issues including the challenges related to the development and governance of the hydrocarbon sector of each country, and the relationship between the hydrocarbon sector and the national economy," said Zanoyan.

"The role of national oil company and the international companies, the structure and role of policy-making authorties within the broader government apparatus are some of the crucially determining issues which they need to be re-evaluated constantly."

He said: "In every Gulf country, the hydrocarbon sector is treated as an exogenous cash cow with no real operational linkages with the rest of the economy," he added.

However, none of the economies of the region can afford to leave unrealised the vast developmental potential of integrating oil and gas production with the rest of their economies," said Zanoyan.

Dr Fereidun Fesharaki, Founder and president Fesharaki Associates Consulting and Technical Services, USA, said: "Asia and the Middle East are the world's most promising energy markets, particularly in the oil and gas sectors."

"Given the low per capita use of oil and gas in Asia, the region's consumption of oil products is poised to grow at three per cent in the years coming," said Fesharaki.

"Having low energy resources, Asian region is heavily dependent on the Middle East for its supply of oil , and now increasingly for natural gas ."

"Currently the Gulf exports over 60 per cent of its oil to the Asia-Pacific region and Asian countries import 73 of their oil from the Gulf." "This supplier -consumer relationship is poised to grow further as Asia's grow energy need and depleting oil and gas reserves will make the region increasingly reliant on the Gulf for its energy requirements," said Fesharaki.

Christophe de Margerie, President, Exploration and Production, Total, France said: "Recent oil discoveries made in the deep offshore the West African margin and Gulf region a long with numerous development production projects that have followed in many parts of the world are positive indications of the future of oil production and availability of adequate energy."