Middle Eastern countries are now starting to face up to the reality of the situation unless they rapidly increase their production of power over the next two decades then they can expect massive power shortages in the future.
Many countries are now bracing themselves for the biggest expansion of the power industry to be witnessed since its inception. While this could not have come at a worse time in the midst of a global recession and with the natural resources to power these plants dwindling it is now being accepted that there is no alternative.
Analysts are saying that this expansion has already been delayed for too long because of the lack of financial backing available and worries about the availability of Natural gas but if large shortfalls in future supply are to be averted then decisive action is required now sooner rather than later.
Kuwait is already suffering from power shortages every summer and they now concede that they need to invest US $15 billion to upgrade and modernize their power supply network.
Saudi Arabia is estimating an increase of 57% by 2018 and they need to begin the process of increasing their capacity by about 3000 megawatts per year which is the same amount of power that will be produced from the two new nuclear reactors being planned for Abu Dhabi which are being estimated to cost in the region of $54.5 billion.
Unless the region begins to use solar power or builds nuclear power stations they will burn 27% more oil every year, therefore reducing the amount of oil available for export. Even when this difficulty is overcome raising the finance needed is proving to be very difficult and sourcing Natural gas becoming increasingly difficult.Andrew Reid, Staff Writer, Gulf Jobs Market News