Shell:
Region well placed to meet rapid growth in demand for gas
Posted: 10 May 2004
Shell director welcomes moves that will encourage new energy
industry investment
The Middle East is well placed to take advantage of the rapid growth
in world demand for gas which could overtake oil as the “fuel
of choice” within the next 25 years, Andrew Vaughan, the Regional
Technical Director for Shell Exploration and Production, told an
international conference in Bahrain today.
Speaking to delegates attending the Middle East Petroleum and Gas
Conference (MPGC), Andrew Vaughan, who is responsible for development
projects across the Middle East, Russia and CIS, said that oil demand
would continue to grow and consumption could be as high as 110 million
barrels a day by 2020. But, he emphasised: “World demand for
gas is likely to grow even faster.”
Pointing out that the region’s gas resources accounted for
36 per cent of the world total, Mr Vaughan said: “Gas projects
in the region can complement and supplement oil, and bring added
value”.
In order to fulfil the potential these resources present, the Middle
East would have to overcome a number of “significant challenges”,
Mr Vaughan continued, especially the question of pricing, the need
for investment and competition for both capital and market share
from around the world as well as technical challenges. “But
none of them creates an insurmountable barrier to global or Middle
East energy security.”
Mr Vaughan welcomed moves in recent years by resource holders in
the region to create a more open business environment which was
“a crucial consideration for a company trying to decide where
best to invest its capital”.
Among those moves, he cited production-sharing agreements that
had already brought benefits to resource holders in the region.
“They have proved very effective in achieving a balance of
incentives between governments and oil companies”.
Other “welcome developments”, said Mr Vaughan, had
been the privatisation programme in Saudi Arabia, progress in the
negotiations for Saudi Arabia to join the World Trade Organisation
and moves forward in free trade area negotiations between the Gulf
Co-operation Council (GCC) and the EU and US.
He continued: “Clearly, as the business climate in the Middle
East becomes more open and forward looking, it becomes ever more
attractive in terms of investment propositions [from the international
private sector] as well”.
Shell also contributes a mobile laboratory which is used to examine
residues and emissions at every Formula One track to gain insights
into car performance. This includes analysis of metal particles
present in oils which provide early indications of engine and gearbox
wear.
Shell and Ferrari have together won more than 100 Formula One races.
This season the partnership has already earned Ferrari 33 out of
a possible 38 championship points.”
For more information see www.shell.com
Posted by Richard Price,
Editor Pipeline Magazine
Information supplied by companies
or PR agencies who are responsible for content. Send press releases
to info@pipelinedubai.com |
