Oil and natural gas prospects: Middle East and North Africa

The MENA region is endowed with enormous resources of oil and gas, rendering it the world′s richest region in this regard. Endowment differs from one country to another with few countries are almost dry; however the economic benefits proliferated to almost every country in the region. In spite of some doubts being cast about the amount of proven oil reserves, these with improved technology and new discoveries are increasing year after another. With no long term feasible alternatives to oil for transport and the increasing trade in LNG, the region′s importance as a world′s leading supplier of fossil fuels will continue for decades to come. However, these favourable prospects hide many challenges facing the MENA region, among them is the difficulty in mobilizing investment funds for sustaining and increasing output to feed growing global demand. Growing local demand, due to the proliferation of subsides, is another worrying aspect that already caused few countries with modest resources to become oil importers instead of exporters, with larger exporters decreasing their surplus output. The region is also still mainly dependant on foreign technologies and skilled manpower. Regional cooperation in oil and gas networks and electricity interconnections is still modest. The region has a long history of conflict; correspondingly it is a major importer of armaments which is increasingly eating a lot of its surplus income. With the political and social changes presently taking place in many MENA countries, due to the Arab spring and continuation of local conflicts, the sustainability of supplies from the region are increasingly a source of worry to MENA exporters and its many importers. It is also causing increasing involvement of the super powers in regional affairs. - Highlights: • Global oil and gas reserves and prices. • Energy sustainability and the Middle East. • Energy economics and investments in the Middle East