Energy
From The Report: Qatar 2012
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Having gone from being a minor actor on the world energy stage to a pivotal player in less than a decade as part of an expansive strategy, Qatar has tapped its vast gas reserves by engaging international oil companies and building a comprehensive infrastructure network. This approach has allowed Qatar to become the largest liquefied natural gas (LNG) exporter in the world. The state has also pushed its crude oil production levels upwards: production stood at 742,000 bpd in January 2012, up from 732,000 bpd a year earlier. However, the government is also looking to the long-term future of energy security, as there is a strong opportunity cost associated with solar energy providing savings on natural gas usage in the domestic market. This development is an indicator of the growing confidence and maturity of the sector.
This chapter includes interviews with Mohammed bin Saleh Al Sada,
Minister of Energy and Industry; Christophe de Margerie, CEO of TOTAL; and Wael Sawan, Executive Vice-President and Chairman of Qatar Shell and Managing Director of Pearl GTL.
Articles from this Chapter
Thinking ahead: Ensuring flexibility with careful planning, partnerships, and long-term upstream and downstream investments
OBG talks to Mohammed bin Saleh Al Sada, Minister of Energy & IndustryOBGplus
Interview: Mohammed bin Saleh Al Sada To what extent is there a need to balance increasing fossil fuel production with a lower growth outlook for economic development? MOHAMMED BIN SALEH AL SADA: The main driver for energy demand is economic activity, followed by government policies, new efficiency technologies and population growth, among others. By 2035, nearly 90% of this growth in demand will be in non-OECD countries, with a net increase in oil demand coming from the transport sector. Similarly,…
Land of the rising sun: Solar is at the forefront of a push to increase the use of renewablesOBGplus
“Sustaining prosperity over the long term requires wise management of exhaustible resources to ensure that future generations inherit ample means to meet their aspirations,” reads Qatar’s National Development Strategy 2011-16. It calls for improving productivity and efficiency in the energy and power sector to maximise the value derived from the country’s gas reserves. Diversifying energy production to include renewables is therefore an explicit goal. Building on this vision, Qatar has…
Sitting comfortably: The country is well positioned for expected demand increasesOBGplus
Rapid demographic and economic expansion over the past decade has placed a substantial burden on Qatar’s power sector. The government has risen to this challenge, tapping the country’s vast natural gas reserves to fuel the roll-out of a number of independent water and power projects (IWPPs). Unlike many of its counterparts, Qatar has avoided a power crisis and currently sits on a generation surplus, allowing it to export power to the GCC region. However, while the utilities sector has been…
OBG talks to Christophe de Margerie, CEO, TOTALOBGplus
Interview: Christophe de Margerie Is there a need to balance increasing oil and gas production with a dampened growth outlook? CHRISTOPHE DE MARGERIE: That depends how far ahead you look. There is in fact no clear consensus on the level of energy supply and demand right now, considering various uncertainties to do with Iran, production in non-OPEC countries, and the move away from nuclear power post-Fukushima. But while there are concerns about the impact of the global economic slow-down on energy…
A fluid situation: The dynamics of the global LNG market are shiftingOBGplus
The global market for liquefied natural gas (LNG) is in a period of flux. While natural gas prices over the past few years have become partially decoupled from the price of oil, some customers still complain of the impact of crude prices on the market. Furthermore, as prices on the Henry Hub market in the US have nosedived, global spot prices have remained firm and even increased. However, even in this period of uncertainty, Qatar has retained a strong market position, based on its huge and reliable…
Going with the flow: The government is taking various measures to shore up water securityOBGplus
With Qatar positioned to meet all its power requirements over the next three years, attention has now turned to the water sector. Although the country has developed significant capacity here, demand continues to grow and policymakers in Doha are becoming acutely aware of the importance of water for long-term sustainable development. Maplecroft’s 2011 Water Stress Index, which measures the ratio of consumption against renewable supplies, states Qatar is the second-most water-stressed country…
Emission possible: Sustainability initiatives are set to dramatically reduce pollution over the coming yearsOBGplus
Given the size of its hydrocarbons industry, Qatar has historically been a significant polluter, relative to its geographic and demographic size. However, the government is now working to take a leading role in cutting emissions and pushing the country towards international best practices on air pollution. Qatar has one of the highest rates of carbon emissions per capita in the world, standing at 53.5 tonnes per year in 2011, according to Climate Action, an environmental impact consultancy. Given…
Drill seekers: Advanced recovery techniques are key to maximising oil resourcesOBGplus
The Middle East may be known for its abundant oil reserves, but as some of the leading producers reach half a century of production, extraction is becoming increasingly difficult. As such, markets like Qatar are becoming centres for new technologies that are pushing the boundaries of what is possible and helping the industry tap previously uneconomical reserves. PRODUCTION: Qatar has been rightly lauded for its liquefied natural gas (LNG) revolution, taking it to the forefront of the global…
Bring it on home: The long-term focus is switching to maintaining a steady supply of gas for domestic useOBGplus
Signs of a shift in Qatar’s energy policy have been evident over the past two years. As the moratorium on the North Field continues, the government is turning its attention to domestic requirements, eager to avoid the fate of other regional liquefied natural gas (LNG) producers that have had to begin importing gas. The $10.3bn Barzan gas project, owned by Qatar Petroleum (93%) and ExxonMobil (7%) and operated by RasGas, is a clear signal that Doha is looking to focus on domestic demand over…
Waste not, want not: The government is looking to bolster sewage treatment capacity and make water usage more efficientOBGplus
Given the forecasts for strong economic and demographic growth in Qatar over the coming decade, and the concomitant demand for water, the government has been turning its attention to its wastewater treatment strategy. Doha is aiming to bolster capacity for sewage treatment and improve efficiency of water use by increasing the role of treated sewage effluent (TSE) for non-potable water purposes. “Qatar is now investing significantly in an integrated approach toward sustainability – the first…
OBG talks to Wael Sawan, Executive Vice-President and Chairman, Qatar Shell, and Managing Director, Pearl GTLOBGplus
Interview:Wael Sawan What are the latest trends in gas to liquids (GTL) globally? Who are the major importers and where do you see future demand growth coming from? WAEL SAWAN: In general, significant growth in demand for energy comes from Asia, as the market there continues to grow. Globally, we have just surpassed the 7bn population mark, and are en route to what we believe will be 9bn or so by 2050. So population growth as well as economic growth will fuel demand for energy, especially…
