Iraq, which holds the world’s third-largest conventional oil resources, plans to become a major energy powerhouse in the coming decade and has the capacity to scale up oil production significantly without bankrupting itself, Iraq Deputy Prime Minister for Energy Hussain Ibrahim al-Shahristani said.
Iraq’s oil production capacity build up, India’s emergence as Asia’s number-one refining hub and shifting energy flows brought about by the shale revolution in North America are among the game-changing developments that will shape the face of the global energy industry for decades to come, Al-Shahristani and top regional energy officials said.
“Iraq, at present, is carrying out an extensive program, with the assistance of major international oil companies to boost its oil production to 9 million-10 million barrels a day by 2020, thus making Iraq the largest contributor to the growth in the global oil supply, accounting for about half of new supply,” said the country’s top energy official, who will give his first ever keynote speech in Dubai at The Gulf Intelligence Energy Markets Forum on Sept. 24. Iraq can be counted upon to be a dependable long-term oil supplier, and in so doing dampen oil price volatility to facilitate continued growth of the world economy, particularly in the developing countries, he added.
In the wake of $10 oil in the late 1990s the world witnessed significant consolidation in the energy industry with a wave of M&A activity redefining the industry. With oil prices having transitioned to price levels of around and above $100 a barrel in the last few years, the industry appears to be witnessing a new transformation, less defined perhaps but equally as radical – the world’s largest trading firms are diversifying, building asset bases and selling equity; New energy regions are emerging with unique challenges accessing the market; oil benchmark pricing is in transition and under scrutiny by regulators and Super Majors are slimming down and offloading downstream assets.
At the same time, the emergence of India as a leading economic power in Asia has ushered in an era of rapidly rising domestic energy demand and fuelled plans to turn the country into a regional energy hub. The Paris-based International Energy Agency (IEA) estimates that, by 2013, India will emerge as the largest refined petroleum product exporter in Asia, surpassing the former leader Singapore.
“US shale oil and gas has significantly impacted global energy flows. East Africa, with the appropriate developments, also will be well placed to capitalize on shifts in global demand, accelerate regional economic growth and offer diversification of supply to Asia and beyond,” said Christopher Bake, Executive Director, Vitol Group, who will participate in the Gulf Intelligence Forum on a panel that will debate issues facing global oil markets.
Other events that will shape the energy sector in the years to come to be discussed at the forum include the emergence of a New Energy Corridor East of Suez and – in another keynote speech to be delivered by Dr Fereidun Fesharaki, Chairman, Facts Global Energy – Game Changers Facing Global Oil Markets.
The forum takes place at a time when the momentum in the global economy is shifting away from emerging markets and back to advanced economies after years in the doldrums, the Organization for Economic Co-operation and Development said earlier this month. The widespread loss of momentum in emerging economies makes for sluggish near-term growth prospects for the world economy. The impact of this shift will be another topic to be covered at the forum.
