Crescent Petroleum’s Executive Director, Badr Jafar is predicting an increase in the role of the Arabian Gulf with respect to the global supply of oil in the wake of the Deepwater Horizon Oil disaster.
Mr Jafar said that it was “unquestionable” that the Oil and Gas industry would not be subject to greater scrutiny particulary in the areas of health and safety and environmental standards, adding that the Arabian Gulf would play a “critical role” in guaranteeing the supply of oil during this “challenging period.”
According to the Bahrain Tribune, the International Energy Agency estimates that Oil production in the Guf of Mexico could be 100,000 to 300,000 barrels a day lower than expected by 2015. These pessimistic figures are driven by the current 6 month suspension of drilling in the Gulf of Mexico; a realisation that deepwater Oil and Gas drilling is, in fact even more complex and hazardous than previously thought, the net effect of which will be reduced or delayed investments and certainly more regulation.
And the effects are likely to reach every corner of the deepwater drilling world – operators and regulators taking time to understand how to prevent such disaters happening on their own domains, and some players simply reducing investment in this sector due to greater perceived risks.
Extrapolate this slowdown across the global deepwater E&P industry and the IEA predicts a deficit of upto 900,000 daily barrels of oil by 2015, which is around 1% of todays estimated global oil demand.
The Arab Gulf region is likely to be cushioned from the effects of the deepwater Horizon disasterm largely due to its focus in onshore and shallow water production. But more investment in the region will be needed as the pressure mounts due to tightening global Oil supplies.Paul Holdsworth, Staff Writer, Gulf Jobs Market News