A supply-and-demand balance will return to the oil market in the first half of 2017, according to the winner of the Al-Attiyah Foundation’s Lifetime Achievement Award for the Advancement of the Qatar Energy Industry.
Hamad Rashid Al-Mohannadi, the former CEO of RASGAS, said: “[The] oil market over-supply situation is continuing. Recent production disruption has helped temporarily balance the market leading to some stabilisation and increase of oil prices.”
However, he added that the decline in North American oil production is currently slower than predicted, while global demand growth for energy – particularly from China – is also slower than expected.
“We expect oil market uncertainties to continue during the second half of 2016, before moving toward more balanced market during first half of 2017. However, this will depend on factors such as, demand growth globally, production levels from OPEC and the rate of decline from higher cost producers such as non-OPEC.”
Al Mohannadi, a senior advisor at Qatar Petroleum and ABHAF Board Member, was honoured at a gala dinner for the Abdullah Bin Hamad Al-Attiyah International Energy Awards at the Museum of Islamic Arts in Doha alongside six other lifetime award winners:
• Award for the Advancement of the Organization of Petroleum Exporting Countries: HE Dr Majid A. Al-Moneef, advisor to the Royal Court of the Kingdom of Saudi Arabia
• Award for the Advancement of Renewable Energy: Adnan Z Amin, director-general, International Renewable Energy Agency (IRENA)
• Award for the Advancement of Producer-Consumer Dialogue: Claude Mandil, former executive director, International Energy Agency
• Award for the Advancement of Education for Future Energy Leaders: Dr Bassam Fattouh, director, Oxford Institute for Energy Studies
• Award for the Advancement of International Energy Journalism: Margaret McQuaile, former senior correspondent, Platts
• Honorary Lifetime Achievement Award for the Advancement of International Energy Policy & Diplomacy: HE Ali Ibrahim Al-Naimi, former Minister of Petroleum & Mineral Resources, Kingdom of Saudi Arabia
The recently retired HE Ali Al-Naimi was described by awards patron HE Abdullah Bin Hamad Al-Attiyah as “one of the greatest energy leaders of the last 100 years”. HE Al-Attiyah added: “His long career saw him literally rise from the shop floor to become the world’s most powerful oil executive for 30 years.”
Other award winners shared their industry forecasts.
HE Al-Moneef said: “This a year that will mark the ability of OPEC and the oil producing countries to adjust to the new oil price cycle by promoting continued market vigilance and cooperation with other stakeholders to bring back stability to the oil market, and by taking the necessary country reforms for such adjustment.”
And Amin of IRENA added: “The business case for renewable energy is stronger than ever. IRENA’s analysis shows that it is possible to double the global share of renewable energy in the global energy mix to reach 36% by 2030. Such doubling is not only economically and technically feasible, but would save up to $4.2tn annually – 15 times higher than the costs – thanks to avoided expenditures on climate change and air pollution.”
