All signs point to Asia leading the gas demand and continuing this upward trajectory for at least the next decade.
Natural gas is still showing strong signs of becoming the world’s second most important source of energy over the next decade, according to Majid Jafar, CEO, Crescent Petroleum, the Middle East’s oldest private oil and gas company.
Examples of this trend are seen in both India and South Korea. India’s Prime Minister Narendra Modi, whose medium-term goal for gas is a rise from 6.5% to 15%, has consulted industry CEOs on how to increase the role of gas in India.
In a break from previous administrations, South Korea’s new policy of phasing out coal and nuclear power in favour of more costly natural gas means it could see gas rise from 18% to 37% of the power mix by 2030.
Jafar said: “Not only is the Middle East the source of 42.5% of the world’s proven gas reserves, but it is also becoming a key consumer with the fastest growth in the region in both oil (3.4% CAGR) and gas (5.6% CAGR) demand over the last ten years.”
Jafar, who is also managing director of the board of Dana Gas, a publicly listed natural gas company in the Middle East, added: “Prosperity of the region depends on managing geopolitical risks, efficiently delivering the energy needs of the region, and maximising recovery of resources, all of which require good policy and a thriving private sector.”
When asked about oil, Jafar said: “Oil markets are showing signs of recovery as 2018 has already seen prices of $68; however, the drastic cut in upstream investment over the last three years has sowed the seed for a potentially significant price spike.”
Jafar is one of the featured speakers at the second Atlantic Council Global Energy Forum in Abu Dhabi, and international gathering of government, industry, and thought leaders to set the global energy agenda for the year, and anticipate and respond to the dramatic changes in the world of energy.
The Atlantic Council Global Energy Forum in Abu Dhabi is scheduled for 12-13 January 2018 and will be attended by energy ministers from across the region, including from UAE, Iraq, Bahrain and Sudan. The secretary general of OPEC and the director general of IRENA will also be there.
During the panel discussion, ‘2018 Energy Market Trajectories – A View from the Top’, CEOs from major global energy firms, including Jafar, will shed light on the year in energy to come, offering insight into major market developments to follow, and guidance on how to interpret those.
In addition to Jafar, other panel participants are Ayman Asfari, CEO, Petrofac; Claudio Descalzi, CEO, Eni S.p.A.; Meg Gentle, CEO, Tellurian Inc; Hunter L Hunt, chairman and CEO, Hunt Consolidated Energy; and Younghoon David Kim, chairman and CEO, Daesung Group, and chair, World Energy Council.
