Strong oil prices have boosted the projected energy investment in the Mena region by nearly US$65bn to around US$615bn over the next five years, according to an official study.
Most of that capital is expected to pour into Saudi Arabia, UAE, Qatar, Iran and Algeria, reports Emirates 24/7, quoting from the study by the Arab Petroleum Investment Corporation (Apicorp). It said the improvement in crude prices that followed a steep fall in the aftermath of the 2008 global financial crisis is encouraging regional crude producers to bring shelved projects back on stream and set up new hydrocarbon ventures.
But the study also found that gas projects continue to face challenges following the US shale gas revolution. "The context of this review for 2011-2015 is that of a global demand for energy gradually recovering and of crude oil prices stabilising within an adjusted anchor price range of US$70-90 a barrel," said Apicorp.
