GCC share of global oil reserves likely to rise to 70pct

By staff - Mon Jul 09, 10:54 am

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According to the latest report by the Kuwait-based Diplomatic Center for Strategic Studies, share of the Gulf Cooperation Council countries to the world oil reserves is predicted to rise from the current 45% to 70% during the first decades of the current century.

According to the report, the GCC countries captured 25% of total world oil crude exports and retain 17% of world proven gas reserves. Based on earlier data filed by Crescent Petroleum, the Gulf region, comprised of the six countries of the GCC plus Iran and Iraq, holds 56% and 40% of the world’s conventional oil and gas proven reserves.

According to Crescent Petroleum data, in 2010, the Gulf Region produced over 25.2 million barrels of oil per day and 44.6 billion cubic feet of natural gas per day accounting for over 30% of the world’s oil production, 15% of gas production and 32% of liquefied natural gas exports.

Country wise, Saudi Arabia retains 38.7% of world oil reserves whereas shares of Kuwait, the United Arab Emirates and Qatar stand at 14.8%, 14.3% and 3.7% respectively. With regards to gas reserves, Qatar ranks the third globally at 46.3% followed by Saudi Arabia, the UAE, Kuwait, and Oman at 14.5%, 11.1%, 3.3% and 1.7% respectively.

As the biggest oil producer in the world and with a proven reserve of 264 billion barrels, Saudi Arabia could continue oil supplies for the next 80 years at the current production levels. Saudi Aramco has carried out a mega investment program at a cost exceeding USD 100 billion and, consequently, increased production to 12.5 million barrels a day and plans to bring the production to 15 million barrels a day by 2015.

Proven oil reserves in the GCC region are poised to increase due to advanced technologies being used in oil exploration processes. Additionally, engineering and geological studies have shown that new oil discoveries will possibly be announced in the GCC region.

Industrial and emerging countries are building bilateral relations with the GCC countries where oil remains the cornerstone of such relations. Oil of the Arabian Gulf is considered the most important source to meet world requirements currently or in the future and thus will play strategic role in the path of world economy.