A new report forecasted that by 2025 the demand for natural gas will overtake oil. The total percentage of energy generated from oil & gas is also likely to increase from 55% in 2010 to 60% in 2040.
Deloitte, Middle East Energy and Resources quoted that on 2040, gas demands would likely to meet more than 50% of the entire energy claims.
This also projected that GCC gas contracts amounting $68bn is to be won in five years.
It has been noted earlier that most national oil companies in the GCC, mostly in UAE, Qatar and Saudi Arabia already have “multi-billion” dollar investment plans for gas exploration and production.
“Although the share of demand for oil and gas is set to rise, it is important to note that alternative energy sources such as nuclear, wind, solar and biofuel will also take on an increasingly significant role in meeting the world’s energy needs in the future”, Kenneth McKellar, leader of Deloitte Middle East’s energy and resources team said
He also added that to improve the performance of the sector, tactics and approach are needed to be implemented in training skilled local staff and embrace the best practices.
“Hence, Middle East oil and gas markets may remain volatile for the foreseeable future”, Mc Kellar said.