A report from Qatar National Bank (QNB) has stated that the country’s gas reserves can maintain production at current rates for the next 138 years
According to QNB, Qatar remains central to the global hydrocarbon sector based on new data for 2014 released in BP’s Statistical Review of World Energy.
Qatar remains the third largest producer of natural gas in the world after the USA and Russia with 5.1 per cent of global production. The country is also the world’s top exporter of LNG with 31 per cent of total global exports in 2014.
An ‘Economic Commentary’ from QNB said that the vast reserves of the Gulf country will ensure it maintains its prominent position in the hydrocarbon sector for years to come".
“Looking forward, Qatar is expected to maintain its dominant role in the global hydrocarbon sector,” read the QNB report.
QNB is a bank half-owned by the Qatar Investment Authority and the rest by the private sector.
In terms of oil and gas reserves per capita, Qatar remained ahead of the other major oil and gas producers. Revenue generated from Qatar’s hydrocarbon exports provides a stable source of financing for major infrastructure investments that are driving the growth and diversification of the domestic economy. The report from BP indicated that reserves of oil and other liquids had risen 2.6 per cent to 25.7bn barrels in 2014. Recent studies and oilfield exploration and development projects are likely to have led to an increase in the level of proven oil reserves. Meanwhile, gas reserves in Qatar fell 0.6 per cent in 2014 as a result of the extraction of gas and in the absence of exploration and development of new reserves due to the moratorium on further gas development and exploration in the North Field where almost all of Qatar’s gas reserves are situated.
In terms of production, Qatar’s total hydrocarbon output was virtually unchanged in 2014 at 5.2mn boepd — 3.2mn from gas and two million from oil. This was largely due to the above mentioned moratorium on further gas development projects.
As a result, gas production grew up in 2014 by 0.4 per cent. The increase in gas production was offset by a decline in oil production in 2014 as Qatar’s oilfields are maturing. The implementation of large investment projects should help to stabilise oil production, such as the US$4bn Bul Hanine plans to update facilities and increase production from 40,000 bpd to 95,000 bpd.
About 58 per cent of Qatar’s gas production was exported as LNG in 2014. Heavy investment in LNG facilities over the last 20 years and a vast ramp up in production has made Qatar the world’s largest LNG exporter, driving the establishment of a global LNG market.
The switch to a cleaner source of energy as well as strong economic growth have made the Asia Pacific region the largest market for Qatar’s LNG exports, taking 72 per cent of Qatar’s exports in 2014.
Looking forward, Qatar is expected to maintain its dominant role in the global hydrocarbon sector. Global demand for clean energy is expected to continue rising, and Qatar is a leader in the LNG market, according to the QNB report.
Moreover, domestic energy demand is expected to rise strongly as the population grows rapidly due to the influx of expatriates being called in to work on the country’s large infrastructure programme.
To meet this rising domestic demand, the Barzan project — a US$10.3bn North Field gas development to increase production for domestic use — is coming online and is expected to drive growth in the hydrocarbon sector.
The first production from Barzan is expected during the second half of this year, QNB said.
At the same time, the report said oil production is expected to stabilise, leading to an increase in real GDP growth in the hydrocarbon sector to 0.8 per cent in 2015, 1.8 per cent in 2016 and 1.9 per cent in 2017.
