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25-07-13

GCC position as oil exporter will not be impacted

(MENAFN) A report released by Asiya Investments in Kuwait stated shale oil will not impact the GCC negatively for another 20 years. The report also said that oil consumption in Asia will exceed natural gas by that time, Saudi Gazette reported. ï¿½Asia will play a more central role in the Gulfï¿½s exports. However prices will probably be affected, reducing oil revenues in the GCC and making Asia more competitive due to cheaper inputs,ï¿½ said senior economist Francisco Quintana at Asiya Investments. The report cited reasons as to why GCC will still hold the lead as an energy exporter. Switching to natural gas is not cheap. Also, it would require time to construct a strict framework to not breach environmental concerns. Another reason is that demand on oil is increasing in Asia ï¿½There is much hype about shale oil and gas these days, and much of it is true, especially in the US. But on the global scene we see no major changes in the dynamics of Gulf oil in the next two decades. Consumption is projected to continue to grow driven by fossil-fuel hungry Asian economies. And the Gulf is successfully shifting their attention to cater to that demand,ï¿½ said economist Dana Al Fakir at Asiya Investments.

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