Gas Reserves and Production in Quatar, Iraq, Oman, UAE Kuwait, Saudi Arabia and Bahrain - Book Report/Review Example

Qatar Overview In addition to being the worlds’ largest exporter of liquefied natural gas, Qatar also exports crude oil and petroleum products, which contribute to a large portion of the government revenues. In 2012, Qatar was world’s fourth largest producer of natural gas, behind countries such as Russia and Iran. In 2023, Qatar approximately produced 1.6 million barrels of liquid fuels every day, which included crude oil, condenses, natural gas plant liquids, gas to liquids among others. Of these 1.6 million barrels, crude oil accounted for 730000, while the rest was non-crude liquids. Oil Reserves Among the members of the organization of the petroleum exporting countries (OPEC), Qatar is the second lowest producer and exporter of crude oil. In 2012, the country’s non-crude liquids production surpassed its crude oil production for the first time since the history of the country. The country holds 9th position among countries with the largest reserves among the OPEC countries, and 13th position across the world. Refining and consumption Refining capacity of Qatar surpasses its domestic demand for petroleum products, hence a main reason why the country exports most of its refinery output. Between 2003 and 2012, Qatar’s petroleum consumption rose by more than 70% from 72000 to 189000 barrels per day. Operating two refineries, the country has a combined crude oil refining capacity of 338,700 barrels per day. Exploration and production Although oil exploration in the country currently is in progress, it is not with the same degree as other producing countries. The last major oil discovery in Qatar was in 1994 when the country discovered oil in the Al Rayyan field. Especially because of the use of enhanced oil recovery technique, Qatar has managed to maintain its production of oil from its existing fields. Imports and exports  Qatar does not import any oil, but occasionally imports petroleum products because the manufacturing sector seldom meets the demand for these products. As the country’s production of oil and natural gas far outreaches the domestic demand, the country exports most of its oil and natural gases. Three major terminals that export Qatar’s petroleum products include Umm Said, Halul Island, and Ras Laffan. Natural gas This is most important element in Qatar’s energy sector. Despite being the leading exporter of liquefied natural gas, the recent discoveries are likely to boost the production in the recent future. In January 2014, the country was the third largest country with proved natural gas reserves, approximated at 885 trillion cubic feet. Iraq Overview Globally, Iraq is the fifth largest in proven oil reserves in the world, surpassing Iran in 2012. In 2012, Iraq the world’s eighth largest producer of total petroleum liquids and ranked position five among the countries with the largest petroleum reserves after Saudi Arabia, Venezuela, Canada, and Iran. With the recent exploitation of the natural gases in the country, Iraq could be one of the few countries left with non-fully exploited hydrocarbon reserves. It is only in the recent past that the country has started exploitation of its oil reserves after years of war and sanctioning. However, as the war destroyed most of the country’s infrastructure, it has to set these in place before becoming an exporter. Reserves Despite the country being one of the few with a high level of oil reserves, the country cannot fully exploit these reserves, owing to poor infrastructure and political disputes. In January 2013, the country reviewed upwards its proven oil reserves from 115 billion barrels to 141 billion barrels. Most of the known reserves in the country fall at the eastern edge of the country. Refining and consumption Despite the high levels of reserves in the country, Iraq cannot refine most of its products, subsequently exporting crude oil to the Asian countries and the United States. Challenged with poor infrastructure, the country cannot adequately refine most of its crude oil. However, plans are underway to build infrastructure that would facilitate the refining process. Because of its high production capacity, the country exports most of its crude oil and natural, gases. Exploration and production The country experiences reduced levels of oil and natural gas exploration and production, resulting from its weak infrastructure. However, it produces at least 3 million barrels per day, hence being the second largest producer of oil from Iran, in 2012. Most of its production comes from the three of its giant oil producing fields, Kirkuk, North Rumila and South Rumilia. Imports and exports  In 2012, Iraq was world’s sixth exporter of petroleum liquids, with most of its exports going to the United States and Asian countries. in2012, it exported 2.4 million barrels of crude oil, of which Iraq’s Persian Gulf ports contributed 2.1 million barrels. The country is a regular importer of petroleum products, but does not import any oil or natural gases. Natural gas Iraq flares most of its natural gases and in 2010; it became the fourth largest natural gas flaring country. However, it plans to change this technology to use natural gases to generate power and re-injection to increase its discovery. In 2012, the country’s natural gases reserves, approximated at 112 trillion cubic feet were world’s 12th largest. Oman Overview Oman is the largest oil and natural gas producing countries in the Middle East that is not a member of the organization of the petroleum producing countries. In 2012, Oman’s hydrocarbons accounted for 86% of total government revenues. Additionally, 40% of the country’s gross domestic products came from the oil and natural gases revenues. According to the country’s government reports, the country’s breakeven price for oil was approximately $104 per barrel. Reserves The country considerably relies on its hydrocarbons sector to finance its economy, just like other countries in the Middle East. The country has however, more undiscovered oil and natural gas reserves than what it currently reports. Oil Early 2000s, investment in enhanced oil recovery techniques helped the country oil production rebound from a multi-year decline. In January 2013, the country had proven oil reserves approximated at 5.5 billion barrels. The southern Oman Salt basin can potentially produce up to 370 million barrels of oil, over 315 billion cubic feet of natural gas liquids and over 40 million barrels of natural gas liquids. Refining and consumption Since a multiyear decline in the oil production in the country, the adoption of the enhanced oil recovery techniques such as steam injection and miscible injection helped the country regain its oil production in the year 2007. Located in the Arabian Peninsula, the country hopes to transform itself by expanding its refinery and storage sectors. Exploration and production The country’s total oil supply hit the 924,000 barrels per day in 2012, with the government hoping to surpass this mark in 2013. Currently, there is oil exploration in the country’s 28 exploration blocks. In the year 2013, the country awarded 2 blocks tenders and expected to award 7 more in future to increase its exploration exercise. Imports and exports  Asian markets rely on oil exports from Oman. Out of the 278.2 million barrels of crude oil exports made by Oman in the year 2012, 95% went to the Asian countries, with half of these going to China. Despite the country not being a net exporter of refined petroleum, there are plans to expand the country’s refining sector in the near future. Although, it does not import any crude oil, it imports small volumes of petroleum products for domestic market consumption. Natural gas Despite the country exporting natural gases from its two liquefaction facilities, the rising demand for LNG in the domestic constrains its ability to maximize on these exports. In January, the country had 30 million cubic feet of proved natural gas reserves, holding the 5th position in the largest dry natural gas producers in the Middle East and 26th position globally. The country however uses most of its natural gas in the exploration of its oil production sector. United Arab Emirates Overview This is one of the 10 largest oil and natural gas producers globally. It is a member of both the oil and petroleum exporting countries and the gas exploring countries forum. The country is a federation of seven countries, Abu Dhabi, Ajman, Al Fujayrah, Dubai, Ras al Khaymah, Sharjah, and Umm al Qaywayn. Since its independence, the region has considerably relied on oil to finance its operations. The hydrocarbon exports from the country accounts for about 80% of the total government revenues and over half of the total exports by the country. Oil UAE is a major producer and exporter of oil. Reports indicate that in 2012, the country produced an average of 2.8 million barrels of oil daily, hence falling at the eighth position globally. The country falls at the seventh position as the largest proved reserves of oil, with 97.8 billion barrels. Refining and consumption The country considerably relies on the EOR techniques in the production of its oil. This is in an effort to prolong the lifespan of its reserves. ADNOC, a company owned by the government controls most of UAE’s resources. It however does this in partnership with a number of large international oil companies. Exploration and production Recent exploration in the country has not yielded any new crude oil discoveries. Because of this reality, the country emphasises on the use of EOR techniques designed to prolong the lifespan of the crude oil reserves. These techniques helped the country double the proved reserves in the recent past decade. Imports and exports Despite the country having approximately 215 trillion cubic feet of natural gas, it is a net importer of natural gas since 2008. The fact that the country re-injected at least 26% of its gross natural gas production from 2003 to 2012 into its oil fields as part of its EOR techniques, coupled with the rapidly expanding electricity grid increases this demand. It is however a net exporter of oil. Natural gas With an increased internal demand for natural gas, the country hopes to boost domestic natural gas production over the next few years. The region, in an effort to meet this increasing demand, it imports natural gas from neighbouring Qatar. The region’s natural gas has high sulphur content, thus making it corrosive and difficult to process. Kuwait Overview Kuwait, a member of the organization of the petroleum exporting countries, it was at the 12th position as the world’s largest producer of oil in 2012. The country’s economy heavily relies on the petroleum export reserves; accounting for half of the gross domestic product and over 70% of its export revenues. Reserves The country has 6th of the world’s largest oil reserves. it has over 102 billion proven oil reserves, which is roughly 6 percent of the total oil reserves in the world. It also has additional reserves in the Partitioned Neutral Zone, which it shares equally with Kuwait. Oil In 2012, the country was ranked 6th in terms of oil reserves among all oil producing countries in 2012. The government owns and controls all the oil development sectors in the country. The Kuwait petroleum corporation manages both domestic and foreign oil investments. Supreme petroleum council holds both the oversight and oil policy formulation in the country. Refining and consumption Kuwait exports most of its oil, falling at the third position from Saudi Arabia and Iran among the OPEC countries. Rarely does the country refine its oil, in most cases; it exports it as crude oil to Asia, Europe, and United States. The country only consumes a small portion of its total petroleum production. In 2012, it consumed a total of 406,000 barrels, exporting the rest. Exploration and production The country produces over 4 million barrels of oil in a day, expected to rise by the year 2020. It is therefore one of the ten largest producers and exporters of petroleum liquids in the world. To boost its stagnant production rates, the country has implemented EOR measures in the recent past. In 2012, the country produced an average of 2.8 million barrels every day. Imports and exports  Kuwait is a net exporter of oil, with 2012 reports indicating that the country exported an average of 2.4 million barrels a day, making it world’s largest exporter of liquids among the OPEC countries. The country however sells most of its crude in term contracts. It exports most of its crude oil to the Pacific Asian region, the United States and the European region. In the recent past, the country has become a net importer of natural gas. Natural gas Because of its increased imports in natural gas, the country has decided to focus more on its natural gas exploration. Since 2006, there has been no considerable reduction or increment in the country’s natural gas reserves. There have been recent discoveries of non-associated gases in the north of the country, which have attracted the interest of the IOCs. Saudi Arabia Overview The country is fifth in the world’s total oil proven oil reserves. It is the largest producer of petroleum liquids globally. It is also the world’s largest oil producer. Petroleum exports accounted for 90 percent of the country’s total export revenues. Reserves The country holds an approximately 265 billion barrels of proven oil reserves as of 2013. Although the country has over 100 major oil and gas fields, over half of these fall in eight fields. The giant Ghawar field accounts for about 700 million barrels of oil produced in the country. Oil Refining and consumption Saudi Arabia is the largest oil consumer in the Middle East region.it consumes about 3 million barrels every day, as reports indicated in 2012. The country has over seven refineries, with a combined crude oil capacity of 2.1 million barrels. Exploration and production Imports and exports  The country exports most of its crude oil to the United States. In the year 2012, the country exported approximately 7.5 million barrels every day. It is the world’s second largest exporter of oil to the United States from Canada. The country does not import or export natural gas or oil. Natural gas The country has proven reserves of about 288 trillion cubic feet of natural gas. The largest gas fields in the region are associated with petroleum products. The Gahwar field accounts for one third of the country’s total gas reserves in the country. Bahrain Overview It is not a member of the OPEC countries. The country produced 48000 barrels per day of petroleum in the year 2012. It hopes to increase its production to 100000 barrels per day by the end of the decade. Reserves The country had 446 billion cubic feet of dry natural gas in 2011. It also shares a reserve with Saudi Arabia, which accounts for a considerable amount of its total amount of reserves. Refining and consumption The refinery capacity of the country exceeds the total production. it has a 254000 barrel per day refinery at Sitra. It hopes to expend the refinery capacity to 100000 barrels per day by 2020. Exploration and production Together with Saudi Arabia, the country shares a production of 300000 Abu Safah offshore fields in Saudi Arabia. The country plans to replace its aging pipeline to Saudi Arabia. Imports and exports  The country exports only a small percentage of the total global oil. It is however a net importer of natural gas. Natural gas The country produces low amounts of natural gas, with reserves of only 446 billion cubic feet of dry natural gas. The country thus imports natural gas from Qatar. Read More