At current production levels the UAE could produce oil for approximately 95 years, which equates to 2.8 million barrels per day with proved reserves of 97.8 billion barrels, according to Mark J Eshbaugh, International Energy Analysis at EIA.
However, many suggest that the UAE should look towards Africa to provide longer term oil & gas reserves and to pave the way for closer relations to the massive oil & gas-rich continent.
“You have African countries coming online with oil, and this region has a lot of expertise that they can use in Africa. Frankly I think the Africans would welcome working with this part of the world. The UAE and the region should be looking at how to exploit these opportunities in the continent,” said Morris Reid, managing director at Mercury.
There are currently five countries in Africa coming online with oil & gas, according to Mercury, the GCC countries and their state oil companies should be taking a leadership role in those countries to provide both technical know-how and infrastructure to those countries.
“I think that the UAE should definitely look to Africa. When you look at the radius of what the UAE can touch, Africa is very exciting. The amount of reserves that are being constantly talked about in terms of oil & gas; the story in Uganda, Mozambique and Tanzania, it is exciting. The advantage that you have, in Dubai specifically, which is basically depleted interms of its reserves, is the strength of its financing,” said Christopher Fix, CEO of Dubai Mercantile Exchange.
Africa is a huge market for the oil & gas sector and it is growing fast, half the population is under 30, and if the UAE can build a symbiotic relationship, it will benefit both regions, according to Mercury.
One of the major benefits that Dubai in particular can provide to Africa is a robust internationally respected regulator, the DFSA, plus Dubai has the participation and the presence of all the worlds major financial institutions in a region that can reach out to Africa and develop those resources.
“I think that Africa is the new frontier for the UAE. It is something that has just popped up on our radar screen. Not only should it be a consideration for the Middle East, but Africa is something that Dubai as a financial centre could be a big player in,” said Fix.
In numbers:
– 25 countries in Africa either currently produce oil or are exploring
– 2.8 million barrels per day for 95 years left in UAE’s oil reserves
– 4% Of the world’s total oil production came from Africa in 2011
