The Gulf will take on the energy transition challenge

2021 ◽  
Keyword(s):  
Saudi Arabia ◽  
High Risk ◽  
Fossil Fuel ◽  
Oil And Gas ◽  
Energy Transition ◽  
Economic Diversification ◽  
Global Energy ◽  
Content Type ◽  
Gulf States ◽  
Zero Carbon

Significance The zero-carbon fuel, promoted as a way to assist a global energy transition away from oil and gas, is the focus of major planned projects in Oman and Saudi Arabia. Meanwhile, the region’s oil and gas exporters are also looking to maximise the value of their fossil fuel resources before the transition is complete. Impacts GCC oil and gas exporters will become increasingly aggressive in their efforts to knock high-cost operators out of the market. Economic diversification will gather pace, and Gulf states will seek to become hubs for new forms of energy, in particular green hydrogen. The Gulf faces a high risk of economic, political and social turbulence during the transition.

Prospects for the Gulf states in 2022

2021 ◽  
Keyword(s):  
Saudi Arabia ◽  
Natural Gas ◽  
Gulf Cooperation Council ◽  
Energy Market ◽  
Global Energy ◽  
Content Type ◽  
Positive Economic ◽  
Natural Gas Prices ◽  
Gulf States ◽  
Oil And Natural Gas

Subject Prospects for the Gulf states in 2022. Significance The six member states of the Gulf Cooperation Council (GCC), especially Saudi Arabia, are enjoying the windfall from a tight global energy market that has pushed up oil and natural gas prices. They have also coped effectively with the healthcare challenges of the COVID-19 pandemic, laying the groundwork for positive economic prospects in 2022.

Saudi Arabia will implement a dual climate policy

2021 ◽  
Keyword(s):  
Saudi Arabia ◽  
Fossil Fuels ◽  
Oil And Gas ◽  
Electricity Sector ◽  
Content Type ◽  
Net Zero ◽  
Oil And Gas Resources ◽  
Zero Carbon ◽  
Energy Companies

Significance Ahead of COP26, Saudi Arabia announced a Green Initiative and ambitious targets including net-zero carbon emissions by 2060. At the same time, officials are arguing that continued development of oil and gas resources is compatible with pursuing the long-term goal of decarbonisation. Impacts Saudi Arabia may struggle to wean the electricity sector off its near-total reliance on fossil fuels. State-owned firms Aramco and Sabic will seek to develop new revenue streams from technologies that contribute to global decarbonisation. Shareholder pressure on international energy companies may give Aramco a short-term boost, but a supply squeeze risks unsustainable prices.

Algeria aims to put its finances on a sustainable path

2021 ◽  
Keyword(s):  
High Risk ◽  
Income Tax ◽  
Oil And Gas ◽  
Prime Minister ◽  
Policy Reforms ◽  
Content Type ◽  
Finance Minister ◽  
Price Increases ◽  
Investment Law ◽  
Subsidy Reform

Significance The prime minister and finance minister, Aymane Benabderrahmane, has loaded some substantive policy reforms into the 2022 budget law, including a provision for reform of the subsidy system, revisions to the investment law and changes to income tax. Impacts There is a high risk that within the next five years there will be a slump in oil and gas prices. Algeria’s heavy reliance on hydrocarbons makes it particularly vulnerable once momentum builds up for global decarbonisation. Subsidy reform will entail price increases, even if they are gradually applied.

LNG use will be crucial to nations’ energy transitions

2021 ◽  
Keyword(s):  
Fossil Fuels ◽  
Fossil Fuel ◽  
Developing Economies ◽  
Ghg Emissions ◽  
Energy Transition ◽  
Market Volatility ◽  
Content Type ◽  
Market Growth ◽  
Net Zero

Significance LNG is cleaner than most fossil fuels but still incompatible with net zero emissions. India, China and other Asian economies see LNG imports as a ready and economically viable means of displacing coal and oil use. Natural gas and then LNG demand will eventually peak as the energy transition accelerates over the next 20 years. Impacts LNG market growth will embed fossil fuel use and infrastructure in developing economies’ energy mixes. Recent market volatility and record spot LNG prices may reverse the trend of greater reliance on spot transactions than long-term contracts. Although the greenhouse gas (GHG) benefits of LNG use in transport are far from clear, it will gain market share in the next few years. LNG project developers will seek to cut GHG emissions from their projects to prolong LNG's attractiveness in the energy transition.

Toward a diversified economy in post-pandemic environment: regeneration of Qatari villages

2020 ◽  
Vol 45 (3) ◽  
pp. 269-282
Author(s):  
Ghada H. Fetais ◽  
Remah Gharib
Keyword(s):  
Nonprofit Organizations ◽  
Data Gathering ◽  
Exploratory Research ◽  
Structured Interviews ◽  
Economic Diversification ◽  
Content Type ◽  
Built Heritage ◽  
Gulf States ◽  
Vision 2030 ◽  
Strategic Goals

Purpose This paper aims to explore the possibilities of economic diversification in the State of Qatar through the regeneration of built heritage post the COVID-19 pandemic, promoting sustainable tourism and creating a center for cultural heritage in Qatar, thereby enhancing the sense of identity both socially and physically among the nationals and residents. In light of the strategic goals of the Qatar National Vision 2030, which is to diversify Qatar’s economy and minimize its reliance on hydrocarbon industries, if these ambitious goals are to be achieved, there is a necessity to maintain the local cultural identity, demonstrated through architecture and urbanism. Design/methodology/approach This study is an exploratory research based on qualitative methods of data gathering and investigation. The local communities who used to live in the scattered old villages were approached with surveys. At the same time, semi-structured interviews were conducted with professionals in the field in Qatar and other individuals from the public, depending on their literacy levels. Findings This paper examines how to revive those villages and improve their current economic level. Finally, the study proposes some recommendations for these abandoned villages in an attempt to rejuvenate their built heritage and revitalize their socioeconomic status. Originality/value Economic diversification needs to be engendered through the services and products of Qatari society; this is possible by exploiting current resources such as the built heritage or historic sites in areas outside the emerging metropolitan cities. This study reveals the great potential of regenerating the old villages of the Gulf States by establishing nonprofit organizations and increasing the economic benefit of the abandoned historic structures.

Mexico's shale ambitions will have to wait

2016 ◽  
Keyword(s):  
Economic Development ◽  
High Risk ◽  
Oil And Gas ◽  
Oil Industry ◽  
Oil Price ◽  
Tight Oil ◽  
Shale Oil ◽  
Content Type ◽  
Oil Companies ◽  
Growing Crop

Subject Mexico's massive untapped shale oil and gas reserves. Significance Mexico has enough 'tight oil' and gas reserves to make the country energy independent again, according to some estimates. However, finding and developing those reserves will be a long, costly and high-risk endeavour. Unfortunately for Mexico's energy policymakers, the oil price crash has sapped the industry's appetite and ability to take on the challenge. It will be years before Mexico's shale industry regains the momentum that had started to build before the oil industry downturn. Impacts Mexico will grow increasingly reliant on US natural gas imports, providing opportunities for pipeline and other infrastructure builders. Shale development could bring economic development to some of Mexico's poorest regions. A growing crop of domestic oil companies stands to gain from tight oil production.

Tehran and Muscat could deepen economic ties

2017 ◽  
Keyword(s):  
Saudi Arabia ◽  
Political Agenda ◽  
The Political ◽  
Economic Diversification ◽  
Content Type ◽  
Economic Relations ◽  
Military Alliance ◽  
Gcc Countries ◽  
Financial Benefits ◽  
Economic Ties

Significance Oman has historically maintained strong business and diplomatic links with Iran, cutting across the anti-Iranian political agenda pressed by Saudi Arabia on the other Gulf Cooperation Council (GCC) countries. Economic relations are now more important for Muscat than Tehran, while the political ties are most useful for Iranian foreign policy. However, Oman in January 2017 joined the Saudi-led Islamic Military Alliance to Fight Terrorism, comprising 40 countries excluding Iran and Iraq. Impacts Oman’s urgent need for economic diversification will broaden its search for economic partners. If the Iran-Saudi Arabia regional confrontation worsens, Oman’s midway stance could be tilted by financial benefits from either side. In case of a serious Washington-Tehran showdown, Muscat would maintain quiet links with Iran, but ultimately prioritise US relations.

Gulf set for large-scale drawdown of foreign assets

2015 ◽  
Keyword(s):  
Large Scale ◽  
Oil Prices ◽  
Economic Diversification ◽  
Sovereign Wealth Funds ◽  
Content Type ◽  
Fiscal Adjustment ◽  
Capital Spending ◽  
Gulf States ◽  
Oil Revenues ◽  
Spending Cuts

Subject Gulf debt and sovereign wealth funds. Significance After more than a decade of growing oil revenues and rapidly increased spending, the collapse in oil prices since autumn 2014 has transformed the fiscal environment for Gulf oil monarchies. This year will be the first since the early 2000s that most of them incur deficits. Their options for managing them include spending cuts, raising revenue, debt issuance and a drawdown of international reserves. Impacts Saudi Arabia's deep reserves will allow continued high spending for at least half a decade. Bahrain has the fewest liquid assets and faces the most brutal fiscal adjustment, followed by Oman. State-driven economic diversification efforts are likely to slow due to reduced capital spending, including on investment in new sectors. Gulf states' chequebook diplomacy in countries like Lebanon or Egypt will become increasingly less generous. The larger SWFs' tightening focus on risk management leaves them better positioned to manage funding challenges and withdrawal risk.

Huthi crisis will weaken central government in Yemen

2015 ◽  
Keyword(s):  
Saudi Arabia ◽  
Civil War ◽  
High Risk ◽  
Central Government ◽  
Failed State ◽  
Case Scenario ◽  
Worst Case ◽  
Content Type ◽  
International Support ◽  
Wide Scale

Significance The situation in Yemen has deteriorated rapidly after January's takeover of central government by the northern rebel group Ansar Allah, also known as the Huthi movement, and the subsequent resignations of Hadi and Bahah. With tribes and local groups in Sunni-majority areas preparing to resist the Huthi coup, Yemen faces a high risk of wide-scale conflict that could lead towards civil war and failed state status. Impacts In a worst-case scenario, violence would escalate into civil war that assumes a sectarian character and draws in Iran and Saudi Arabia. Al-Qaida will seek to capitalise on the vacuum, increasing attacks on the Huthis to position itself as the defender of Sunni Islam. The Southern Movement would push for secession while other regions could also try to break from Sana'a's control. Foreign powers have limited leverage influence over the Huthis and thus also over the outcome of negotiations. The Huthis may moderate their position due to Yemen's fragile economy, which depends on substantial international support.

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