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The Middle East is set to overtake Asia to become the world’s second-largest gas producer in 2025 after North America, according to Rystad Energy research and analysis

Gas production in the Middle East has grown by about 15% since 2020, as regional producers seek to monetise gas reserves and develop export potential to meet global demand.

The region currently produces about 70bn cubic feet per day (Bcfd) of gas, a figure that is forecast to increase by 30% by 2030 and 34% by 2035 thanks to significant developments in Saudi Arabia, Iran, Qatar, Oman, and the UAE. By 2030, the region will add another 20 Bcfd, around half of which will be needed to meet rising domestic demand, with the rest available for export to Europe – which is keen to reduce its reliance on Russian energy – and fast-growing markets in Asia. Iran is currently the Middle East’s leading gas producer, at around 25 Bcfd, followed by Qatar at 16 Bcfd and Saudi Arabia at 8 Bcfd. But with Qatar’s production projected to rise nearly 50% to 24 Bcfd, driven by the ongoing development of its massive North Field, the country is expected to overtake Iran as the Middle East’s largest gas producer in the early 2030s.

“As more long-term gas contracts are signed and export volumes rise, the Middle East is on track to become a key energy hub for countries seeking stable and dependable sources of natural gas,” said Mrinal Bhardwaj, senior analyst, Upstream Research at Rystad Energy.

Qatar, the UAE and Saudi Arabia are leading this growth, with Qatar’s ambitious North Field expansion set to boost its LNG capacity by 80%, from 77 to 142 million tonnes per annum (Mtpa) by the end of the decade, while maintaining a competitive breakeven price of under US$6 per MMBtu.

“A drop below US$6 per MMBtu is not ideal for investments, but Middle Eastern projects remain highly resilient due to their low breakeven costs, typically below US$5 per thousand cubic feet. Even in a prolonged low-price environment, we expect strong production growth from the region. While some final investment decisions could be delayed in such a scenario, the overall impact on output should be limited,” added Rahul Choudhary, vice president, Upstream Research at Rystad Energy.

Rystad expects investments of more than US$50bn in the region’s LNG developments, as the region looks to strengthen its position in the global LNG market, with Qatar adding 48 Mtpa through its North Field East and North Field South projects. The UAE will contribute an additional 10 Mtpa from the Ruwais LNG project, and TotalEnergies is developing the Marsa LNG project with a capacity of 1 Mtpa in Oman. The new volumes of LNG produced in both Qatar and the UAE are primarily earmarked for Asian and European buyers, with Chinese national oil companies and global energy majors emerging as key buyers.

The Middle East is powering ahead of global energy markets and is a magnet for international businesses, thanks to its pragmatic energy investment approach and enthusiastic tech adoption, according to the Energy Industries Council’s (EIC) latest Survive & Thrive report

90% of energy companies operating in the region reported growth in 2024, according to the EIC report, the highest across all regions surveyed, with further growth forecast in 2025. The Middle East recorded the highest average company growth rate at 68%, compared with 20% growth reported by firms in the Americas, followed by the UK and Ireland at 16%, Continental Europe at 13%, and Asia Pacific lagging behind at 8%.

Businesses are flocking to the region, which is increasingly seen as a high-performance zone for energy, buoyed by consistent government support, low business costs, booming project activity and policies that actively reward private sector growth. As the report notes, supply chains are mobile, and companies are increasingly relocating operations and skilled personnel to regions offering policy stability and better returns, the Middle East being the big winner here.

At a time when much of the world is grappling with policy uncertainty, inflation, and talent shortages, the Middle East appears to be charting its own, far more confident course, according to the EIC, the world's leading trade association for companies providing products and services to the energy industry.

“The Middle East isn’t picking winners, it’s investing in all energy technologies,” said Stuart Broadley, CEO of the EIC. "That pragmatism is why it's now the global magnet for talent and capital. This is indeed the right approach to follow for energy security, industry growth, and supporting the energy transition."

While hydrocarbons remain vital, with more than 90% of EIC member companies in the region still focusing on oil and gas, the growth of investment into renewables, hydrogen, and digital infrastructure reveals a willingness to embrace what’s next, without abandoning what works now.

The UAE and Saudi Arabia, in particular, have made aggressive moves not just in oil and gas, but in AI-driven logistics, smart infrastructure, and clean technology.

“Encouraging tech adoption in logistics — like GPS tracking, automation, and AI — would increase efficiency, transparency, and global competitiveness,” said one executive interviewed for the Survive & Thrive report, echoing a broader sentiment that the region is now outpacing even the US and Europe in practical tech adoption.

However, there are challenges. Over 27% of companies flagged local content schemes as a critical issue. While national in-country value (ICV) programmes are designed to boost
domestic participation, the fragmentation across Gulf Cooperation Council (GCC) countries often complicates compliance for multinationals operating regionally. Harmonisation across the GCC could reduce duplication and unlock even greater regional synergies.

Labour localisation is another problematic area, the report shows, with more guidance needed to support the private sector in attracting and retaining local talent.

There is also rising pressure on infrastructure, with around 18% of executives called for smarter logistics parks, dedicated freight corridors, and improved trade infrastructure.

Despite these obstacles, business confidence remains high.

“For many international firms, the equation is simple: go where the work is, and the Middle East has it in abundance,” the EIC says.

The report features 139 success stories and insights from 138 EIC member companies and underscores the need for all regions to learn the lessons of the Middle East. 

To view the full report, please visit the following link: https://www.the-eic.com/MediaCentre/Publications/SurviveandThrive

Abu Dhabi-based petrochemicals company Borouge is collaborating with Honeywell to conduct a proof of concept for AI-powered autonomous operations, which is  is set to deliver the petrochemical industry’s first AI-driven control room designed for full-scale, real-time operation

The initiative aims to deploy the proof-of-concept technologies to enhance Borouge’s operations across its Ruwais facilities in the UAE. Autonomous operations will enable Borouge to optimise production, reduce energy use, and enhance safety while reducing costs at what will be the single largest petrochemical site in the world. Both companies will leverage their expertise in process technology and autonomous control capabilities to identify new opportunities to deploy Agentic AI solutions and advanced machine learning algorithms.

The project is a key component of Borouge's companywide AIDT programme, which is projected to generate US$575mn in value this year. In 2024, Borouge’s portfolio of over 200 AIDT initiatives—spanning operations, health and safety, sales, sustainability, and product innovation—generated $573mn in value

Borouge has already installed the world’s largest Real-Time Optimisation (RTO) system across three large-scale ethane crackers and 20 furnaces. The initiative analyses over 2,500 parameters per minute, enabling instant data-driven decisions, significantly enhancing productivity, optimising energy consumption and reducing emissions. The unique system minimises ethane dumping and optimises resource use, in line with Borouge's commitment to sustainable growth and operational excellence.

Borouge has invested in its state-of-the-art Innovation Centre located in Abu Dhabi and is now using advanced AI-powered tools to accelerate innovation, enabling the company to bring new grades of advanced polymers to market quicker. In collaboration with ADNOC AI Lab, Borouge has completed its first “Polymer Optimisation” programme, achieving a 97% accuracy, enabling Borouge to reduce its development timeline from months to weeks.

Hazeem Sultan Al Suwaidi, chief executive officer of Borouge, said, “Borouge's AI, Digitalisation, and Technology (AIDT) transformation programme is setting new standards in operations, innovation and business performance. By collaborating with global AI leaders such as Honeywell, we are accelerating growth, driving efficiency, and enhancing shareholder value. This project further strengthens Borouge’s competitive edge as we continue to deliver on our ambitious AIDT roadmap.”

George Bou Mitri, president of Honeywell Industrial Automation, Middle East, Turkey, Africa, Central Asia, said, “By integrating AI and automation technologies into core operations, we are helping unlock new levels of efficiency, safety, and performance. This agreement shows how advanced technologies, applied with purpose, can reshape industrial operations at scale.”

Mohamed Zouari, general manager for the Middle East, Africa, and Turkey at global AI and data cloud company Snowflake, argues that the future of oil and gas hinges on integrating AI and data throughout the value chain

Energy, the driver of the global economy, is undergoing one of the largest shifts of our time, propelled by hundreds of trillions of dollars in global investment over the next 25 years. The Middle East, home to the world's lowest-cost producers and the largest reserves, is positioned at the heart of this transformation. According to OPEC, the region is forecast to provide nearly 60% of global oil exports by 2050.

Against this backdrop, Middle Eastern nations are embedding digital transformation in their national strategies. The UAE’s forward-thinking initiatives, like Masdar City, alongside Saudi Arabia’s giga projects under Vision 2030, illustrate the regional ambition to lead in innovation. With oil exports comprising about 30% of the UAE’s GDP alone, the stakes are high. Data and AI are emerging as vital tools in this evolution, enabling companies to modernise infrastructure, generate real-time insights, and align operational decisions with long-term business objectives. As energy companies navigate this landscape, data and AI are becoming critical enablers for growth, operational excellence, long-term resilience and informed strategy across the oil and gas value chain.

Navigating the digital age

While the opportunity is immense, oil and gas companies face several critical challenges on the path to transformation.

One major obstacle is the need to digitise ageing infrastructure. Decades-old grids and oil wells must now integrate with millions of IoT-enabled assets like wind turbines and solar panels, creating an influx of zettabytes of operational and information technology data that requires efficient ingestion, cleaning, and analysis to drive smarter, faster decision-making.

Extreme weather, geopolitical dynamics, and the variability of renewable energy sources are contributing to more volatile commodity markets. Stable long-term contracts signed with countries like China, Japan, and India offer some security, but sophisticated data analytics are crucial to managing financial exposure and mitigating risks. Enhanced by AI and ML, predictive models can now draw on both internal and external data sources to forecast price fluctuations and demand trends more accurately, helping companies navigate volatile markets with greater confidence.

Corporations now demand rigorous environmental, social, and governance (ESG) reporting, while consumers seek intuitive, tech-driven home energy systems. Energy service providers – from utilities to oil and gas firms – must be agile, transparent, and responsive or risk falling behind.

Compounding these challenges is the overwhelming volume of unstructured data, which now represents 90% of all data according to Snowflake’s Data Trends Report. Without a centralised, secure, and scalable data infrastructure, energy companies will struggle to extract actionable insights.

AI and data strategies in practice

Modern AI and data strategies are offering new pathways to navigate this complex environment. Organisations are moving beyond traditional data management toward platforms that can unify siloed information, enable seamless collaboration across ecosystems, and deliver near real-time insights at scale.

At the core of this transformation is the ability to bring together operational, financial, and customer data into a unified environment. By doing so, oil and gas companies gain a single source of truth that supports more informed decision-making across their entire value chain – from field operations to trading desks to customer-facing platforms.

AI is also fundamentally reshaping how companies approach forecasting, maintenance, and customer engagement. Machine learning models are increasingly used to detect anomalies in equipment performance, allowing for predictive maintenance that minimises costly downtime. In trading operations, AI-driven models help forecast commodity prices with greater accuracy, enabling companies to optimise their portfolios and manage risk proactively.

For personalised customer engagement, companies can leverage real-time customer data and generative AI capabilities to deliver tailored recommendations and intuitive energy management solutions, improving satisfaction and loyalty in a highly competitive market.

Organisations that focus on building robust data foundations are better positioned to drive tangible outcomes, from optimising asset utilisation to accelerating sustainability initiatives. Snowflake’s research shows that 92% of early adopters have already realised a return on their AI investments, and 98% plan to increase AI spending in 2025.

With AI’s contribution to regional economies forecast to grow between 20% and 34%, AI is becoming a blueprint for the next generation of energy operations. The ability to seamlessly integrate and analyse vast, diverse data sets in real time is becoming a decisive competitive advantage.

The next chapter

By embracing AI and modern data strategies, oil and gas companies can digitise operations, manage volatility, anticipate customer needs, and chart a course for long-term resilience and growth – a necessary shift as fragmented data infrastructures and talent shortages remain real hurdles.

In a world increasingly defined by energy transition, those who invest early in scalable data and AI capabilities will not just survive – they will lead. The region’s commitment to digital innovation positions it well to remain a global energy powerhouse well into the future.

Oil Review Middle East hosted a very well-attended webinar on 20 November on the future of offshore operations, in association with SAFEEN Group, part of AD Ports Group

The webinar explored the latest trends and challenges in the rapidly evolving world of offshore operations, focusing on groundbreaking innovations that are driving sustainable and efficient practices. In particular, it highlighted SAFEEN Green – a revolutionary unmanned surface vessel (USV), setting new benchmarks for sustainable and efficient maritime operations.

Erik Tonne, MD and head of Market Analysis at Clarksons, gave an overview of the offshore market, highlighting that current oil price levels are supportive for offshore developments, and global offshore capex is increasing strongly. The Middle East region will see significant capex increase over the coming years, with the need for rigs and vessels likely to remain high. Offshore wind is also seeing increased spending. Global rig activity is growing, while the subsea EPC backlog has never been higher, with regional EPC contracts seeing very high activity. Tonne forecast that demand for subsea vessels and other support vessels will continue to increase.

Tareq Abdulla Al Marzooqi, CEO SAFEEN Subsea, AD Ports Group, introduced SAFEEN Subsea, a joint venture with NMDC, which offers reliable and innovative survey, subsea and offshore solutions to support major offshore and EPC projects across the region. He highlighted the company’s commitment to sustainability, internationalisation and local content, and how it is a hub for innovations and new ideas, taking conceptual designs and converting them to commercial projects. A key project is SAFEEN Green, which offers an optimised inspection and survey solution.

Tareq Al Marzooqi and Ronald J Kraft, CTO, Sovereign Global Solutions ME and RC Dock Engineering BV. outlined the benefits and capabilities of SAFEEN Green as compared with commercial vessels, in terms of safety, efficiency, profitability and sustainability. It is 30-40% more efficient through the use of advanced technologies, provides a safer working environment given it is operated 24/7 remotely from a control centre, and offers swappable payload capacity. Vessels are containerised and can be transported easily to other regions. In terms of fuel consumption, the vessel is environment-friendly and highly competitive, reducing emissions by 90% compared with conventional vessels, with the ability to operate on 100% biofuel.

As for future plans, SAFEEN Green 2.0 is under development, which will be capable of carrying two inspection work-class ROVs simultaneously. A priority will be to collect data to create functional AI models for vessels and operations, with the first agent-controlled payload systems in prospect by around 2027.

To view the webinar, go to https://alaincharles.zoom.us/rec/share/mNHjZhAhQzn1sPzmFWZCgrq7_SckfLRcSb4w81I7aVlokO9sgHM_zVeOqgN3DgJS.bO4OIRqNeFP09SPu?startTime=1732095689000

Sven Kristian Hartvig, chief technology officer, RESMAN Energy Technology explains how the company’s advanced tracer technology is being used for CCS monitoring in Abu Dhabi’s saline aquifers

The UAE has launched its first initiative to inject CO₂ into deep saline aquifers for permanent geological sequestration. This inaugural industrial-scale Carbon Capture and Storage (CCS) project involves storing captured CO₂ emissions in deep saline aquifers, leveraging a geological solution suited to the region’s unique subsurface characteristics. One of the central innovations lies in its leak-detection capabilities, integrating RESMAN’s chemical tracer technology deployed for the first time in the UAE to monitor storage integrity and swiftly pinpoint any leaks.

A comprehensive monitoring framework with Measurement, Monitoring and Verification (MMV) capabilities provides the sensitivity, diagnostic capability, and economic viability required for large-scale CCS deployment. The system is built to last—operational for 30 years post-injection, covering every phase from active storage to long-term verification, delivering real-time insights to verify caprock integrity, quantify leaks, and trace their sources.

The monitoring solution

The monitoring solution centers on RESMAN’s High Integrity Detection System (HIDS), deployed across a network of shallow soil sampling boreholes surrounding the injection site. The system’s defining technical characteristic is its 0.1 parts per trillion (ppt) tracer detection threshold for CO₂ leakage events, enabled by capillary adsorption tubes (CAT) that undergo scheduled retrieval and laboratory analysis.

Tracer monitoring delivers multi-layered verification of storage integrity through three core functions. Continuous surface soil monitoring assesses caprock integrity and simultaneously verifying integrity of legacy wells for leaks to the atmosphere. During post-injection phases, the system maintains active surveillance of stored CO2 utilising the same principles. Advanced diagnostics provide precise leakage quantification and source identification, particularly crucial for multi-injector configurations, where determining CO₂ migration origins is essential.

Shallow boreholes positioned near injection wells monitor any effects the CO₂ injection might have on the geological structure, through surface gas and tracer detection across all operational phases. Radially distributed soil monitoring arrays track potential caprock breaches, with diagnostic algorithms distinguishing between multiple potential leakage sources. The 30-year monitoring protocol spans active injection through post-operational stewardship.

Implementation involves scheduled tracer injection into the CO₂ stream with periodic CAT sample retrieval for laboratory analysis. The system's integrated architecture correlates surface measurements with downhole data, providing leak quantification and source identification capabilities that surpass conventional pressure-based monitoring methods.

The system’s 0.1 ppt tracer detection sensitivity permits early identification of containment breaches at scales previously undetectable. Economic efficiency is achieved through optimized tracer volumes that reduce material requirements without compromising monitoring fidelity. The technology’s eighteen-year track record in continuous monitoring applications demonstrates long-term reliability under field conditions. These attributes collectively ensure compliance with stringent MMV requirements for industrial-scale CCS deployments.

Project implications

This initiative establishes several important technical precedents for regional CCS development. It demonstrates the viability of saline aquifers as secure storage reservoirs while providing a practical template for long-term MMV framework implementation. The cost-efficiency of the monitoring solution addresses a key barrier to CCS scalability in the Middle East. Furthermore, the project’s thirty-year monitoring horizon sets a benchmark for stewardship accountability in geological carbon storage.

This article is based on two recently published scientific papers:
SPE-222348-MS: Chemical Tracer for Soil CCS Monitoring Application: Monitoring CO2 Storage in Saline Aquifers Using Advanced Chemical Tracer and Detection Technology
SPE222367 -MS: Falaha CCS Project - Pioneering Low Carbon Solutions with CO2 Sequestration in Deep Carbonate Saline Aquifers

RESMAN delivers proven tracer-based MMV technology for CCS projects, with over 18 years of continuous carbon storage monitoring experience. For more information, please visit www.resmanenergy.com