Energy expert says world dependence on oil from Middle East to grow
Oil production outside the Middle East region is declining and Gulf states like Saudi Arabia, Kuwait and the UAE will continue to be key suppliers of oil to the world, according to Dr. Fatih Birol, Chief Economist at the International Energy Agency (IAE).
"In general terms production outside the Middle East is declining. So oil production needs to come from there and is set to supply the bulk of the growth in oil output to 2035" he told a conference in Brussels Wednesday which was organized by the Belgian Federal Public Service Economy. "But to make this production grow we need investment about USD 100 billion each year," said Birol presenting the IAE 2011 world energy outlook report.
He said that after the changes in some Arab countries the governments in these countries want to invest money in social development and less in oil industry.
If this happens, warned the energy expert, oil production might fall by 3.4 mbd by 2015 and oil prices could rise to USD 150 pb.
According to the IAE outlook, China by 2035 will consume 70 percent more energy than the US.
Demand for all fuels will rise but the share of fossil fuels in global energy consumption would fall from 81 percent in 2010 to 75 percent in 2035.
However, natural gas would be the only fossil fuel to increase its share in the global mix over the period to 2035.
Reuters
Comments are closed.