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GCC oil revenue will hit US$1 trillion


THE COMBINED OIL income of Gulf Cooperation Council (GCC) countries is expected to reach US$1 trillion (Dh3.67 trillion) by 2030 at current oil prices, an energy expert said at an industry conference in Abu Dhabi recently. "The Gulf contains 40 per cent of the worlds proven oil reserves and 23 per cent of its gas reserves," Dr Hesham Al Khateeb, Honorary Vice-Chairman of the World Energy Council, told delegates.

"The region will continue to play a vital role in world energy security and will be the centre of political and security interest for major importing countries. Future Gulf income from energy exports is likely to meet budgetary requirements and generate handsome financial surpluses," he added. The global oil prices are estimated to rise, on average, by three per cent a year until 2030, he said.

The world is expected to reach its peak oil production level in 30 years, he said. "The challenge is to reduce the peak oil demand," Al Khateeb said, adding global oil consumption is expected to reach 120mn barrels per day before 2040.

He said currently 61 per cent of the energy available gets wasted. "We use only 39 per cent of the energy available to us," said Al Khateeb. "By increasing extraction efficiencies through the use of modern technology, the energy availability can be increased," he added. Al Khateeb said the world depends for more than 80 per cent of its energy on fossil fuels. "There is no alternative in the near-term to fossil fuel. In 2050, oil will still remain an important energy source," Al Khateeb added.