In full text: Al Sada says Qatar delivered all oil and gas shipments to customers despite the siege
13 Sep 2017 - 1:03
Doha: HE Minister of Energy and Industry Dr. Mohammed bin Saleh Al Sada announced that the State of Qatar has delivered all its oil and gas shipments for its costumers despite the siege imposed on it.
Addressing a session organized by the Foreign Ministry's Diplomatic Institute on Tuesday night, HE Dr. Al Sada underlined that this commitment has shown that Qatar has always been reliable in dealing with its customers from oil and gas consuming countries and as a secure energy supplier.
His Excellency predicted that the natural gas will occupy the second place as a conventional energy source globally by 2030 instead of coal, while oil will remain at the first place, adding that there is a growing demand for natural gas in light of the specifications that it enjoys, especially that it is environmentally friendly.
The session, entitled "Qatar National Vision 2030.. Future of Global Oil and Gas Markets", was attended by representatives and directors of departments at the Foreign Ministry and heads of diplomatic missions accredited to the State of Qatar.
HE the Minister of Energy and Industry said that Qatar has become a leader in liquefied natural gas (LNG) through the production of more than 77 million cubic tons of natural gas and the gas-to-liquid conversion capital.
He underlined that Qatar's leadership in the gas field did not stop it from developing the oil sector. The country doubled its production of crude oil from about 400 thousand barrels per day in the nineties to double this figure in a short period.
He noted that through the Qatar Vision 2030, the country has achieved a number of important economic indicators, led by the steady growth in GDP per capita in addition to the development witnessed by various other sectors in the country.
His Excellency noted that despite Qatar's resources in the oil and gas sector, it continued its efforts in economic diversification in order to reduce the dependence on oil in its economy. The contribution of the oil sector to the gross national product fell from 60% in 2010 to only 40% last year as a result of the country's policy of economic diversification. (MORE)
HE Dr. Al Sada said Qatar have had substantial gas reserves since 1970 and nearly 20 years later, he added, Qatar began a project called Al Shamal Alfa field to meet the local demand.
He noted that there were several challenges to exploiting the field, explaining that circumstances in the eighties were difficult due to the lack of financing and the absence of clients, buyers and technology-owning partners, while oil prices were the worst at the time with no motivation to operate the gas field.
With time, HE the minister said, the State of Qatar was able to overcome all these challenges and become the world's biggest LNG producer while also owning the largest fleet to transport such a quantity.
As for the global future of oil and gas, Al Sada said the Middle East has the biggest oil and gas reserves and will continue to be the main provider of the global market. He added that Gulf states share a third of global oil reserves and a fifth of gas reserves, which makes the region the main player in the global energy market and plays an important role in providing energy security.
HE the minister of energy and industry expected oil and gas to make up between 66 percent and 75 percent of all consumed energy in the world until 2040, adding that despite the growing global move towards renewable energy, oil and gas will remain the main source of energy for a long time.
HE Dr. Al Sada added that oil will continue to lead the list of energy sources while natural gas will replace coal in second place in a few years because of the increasing demand for gas and the fact that its consumption surpasses any other source of energy but the main challenge facing oil and gas in the last three years is the falling prices.
During his speech at the Diplomatic Institute, HE Dr. Al Sada noted that the falling prices negatively affected producers and consumers alike because the global economy was growing when the oil price was at $100 per barrel unlike the situation now when its not performing as well despite the big drop in oil price. He said that it is in the favor of global energy security to have reasonable oil and gas prices, which, he added, would help in bringing investments back to the industry and meet the long-term demands in the sector.
HE Dr. Al Sada said the drop in oil and gas prices resulted in the sector losing around 25 percent of investments and deprived it from investments worth nearly $1 trillion between 2015 and 2021, with many projects in the oil and petrochemicals industries postponed across the world as a result. He called for working to bring balance again between supply and demand and restoring investments to the industry.
HE the Minister of Energy and Industry Dr. Mohammed bin Saleh Al Sada said that the State of Qatar has made special efforts to help rebalance the oil and gas market during its presidency of the Organization of Petroleum Exporting Countries (OPEC), and managed to reach an agreement in OPEC with member states to achieve this balance, and then the agreement gained the support of non-OPEC oil producing countries.
HE the Minister underlined that the world is struggling to provide a safe source of energy without a negative impact on the global economy. As efforts continue to combat climate change, it is becoming more urgent to have an important source of energy that is environmentally friendly. For example, natural gas is a clean and an environment-friendly fuel that does not affect the atmosphere, and produces emissions representing half of what other materials produce.
Dr. Al Sada said that there is a global recognition of the importance of the natural gas, noting that the demand for LNG is increasing by 4.5% annually.
He said that gas will play a more important role in the future, which has made Qatar seek to take advantage of this matter and harnesses its gas reserves in order to benefit from the growing demand for gas as an environment-friendly fuel. The State of Qatar announced an increase of LNG production to about 100 million tons per year, noting that the decision came in time to enable Qatar to catch up with this growing demand in 2022 and 2024, as these projects need time and efforts and large investments.
Japan and China consume almost half the global consumption of liquefied natural gas. Although there is a slowdown in consumption in these markets, this was offset by the increased demand in emerging markets, led by India and South America and other areas, HE the Minister said.
In press statements on the sidelines of the session, HE the Minister of Energy and Industry underlined that Qatar did not postpone any of its shipments of oil and gas to its customers, confirming its credibility as an energy supplier despite the siege.
He added that OPEC and non-OPEC oil producers and participants in the oil supply cut agreement succeeded in meeting their commitments, and believed that there is a need to develop a plan for oil markets beyond March, and the time is now appropriate to consider that.
Dr. Al Sada saw an opportunity to extend this agreement in the light of the success achieved, where the participants developed an excellent structure, which is a very good basis that can be fully utilized beyond March, where OPEC meeting is scheduled.