Al Attiyah Addresses Abu Dhabi's Gulf Intelligence Energy Forum

Abu Dhabi,January 09 (QNA) - Energy demand will grow rapidly under the leadership of the emerging economies especially China and India. Addressing the Gulf Intelligence Energy Forum which opened in Abu Dhabi on Monday, HE Abdullah Bin Hamad Al Attiyah, the President of the Administrative Control And Transparency Authority in Qatar also recalled a forecast by the International Energy Agency that energy demand in Asia will almost double by 2035 while consumption in the OECD will remain almost constant. Non-OECD countries lead the growth in energy consumption, the forecast added. A global redesign of the world economy and particularly of the energy industry is at work, he noted, adding that more natural gas will be needed to meet expanding power generation and industrial activity. Following is the text of the speech: The Forum is taking place at a time when the world is entering again in turbulent time regarding the current macroeconomic imbalances in Europe and the USA . Despite these threat to global economic growth , the energy demand will continue to grow rapidly under the leadership of the emerging economies especially China and India. The rapid economic development in Asia is expected to outweigh energy efficiency gains resulting in an overall increase in energy demand. At the same time, even though hydrocarbons remain the dominant source of energy, the energy mix gradually shifts away from oil and coal while natural gas and renewable energies gain market share. A global redesign of the world economy and particularly of the energy industry is at work. The hydrocarbon industry must ensure that relevant investments are made throughout the value chain. More oil will be required to satisfy the aspirations of a growing middle class that seeks transport mobility. Similarly, more natural gas will needed to meet expanding power generation and industrial activity. To face these challenges, hydrocarbons producing countries must ensure that: 1- Adequate investments are leveraged in productive capacity. 2- Appropriate investment is made in technologies to address complex oil and gas projects. These investments will need to be made in a manner that is consistent with the global environmental concerns. Regarding the first investment challenge in productive capacity, if you follow the IEA outlook, close to 20 trillion US dollars will be needed in order to build the global oil and gas infrastructures requested to meet the expected demand in 2035. On a standalone basis ,the MENA region will be asked to invest over 100 billion dollars every year. As I am sure you are all ware, energy investments are a long-term proposition, both in terms of the lead times involved in construction and in the life of the productive asset. Given this, it is vital that transparency exists in the market and that investors have sound information upon which to make decisions. Better data and forecasts will reduce disruptive energy price fluctuations; this will ultimately benefit both producers and consumers of energy products. As well, the closest cooperation between the many partners involved within these projects is essential. A close and loyal relationship between the national oil companies and the international oil companies is a requirement to ensure success in multi-billion dollars projects spreading over many years. Future production levels will be determined by the investment decision we make in the present. As such, we need to ensure that the industry has a stable business environment that will give them the confidence to make large scale investments. The second key investment challenge will be to continue to develop and to apply modern technologies. Let me talk briefly on what was achieved in Qatar to explain my views regarding technological development. As many of you will be aware, Qatar is an oil producing country but also it is the world s largest producer and exporter of LNG .Under the wise leadership of His Highness the Emir Sheikh Hamad Bin Khalifa Al Thani, Qatar has achieved an incredible expansion in its LNG industry. These advances were accompanied with other equally important developments along the value chain of natural gas. Innovative technologies were used to scale the LNG trains, to design the largest LNG carriers as well as to build a unique GTL industry. The completion of such large scale developments demonstrates that technology creation and implementation in as answer to the issues facing the energy industry. Such scale of production and scope of products have only been possible through careful planning, wise innovative technologies implementations and timely partnerships with international investors. At the beginning there, was a stranded gas resource, at the end there is world calls player in the oil and gas industry. Energy is the backbone of our modern society; however it is only through technology that we are able to extract its full benefits. In the areas where no direct competition exists, technology alliances would help the oil and gas industry to reach our common gal of economic and social development. To this end, scientific cooperation, education exchanges and joint ventures could all be used to further our common interests. For example , Texas A&M University in Qatar will enhance its current curriculum by a new Master s graduate program in Chemical Engineering. This program in business leaders, but also develop original research programs in Doha. Such international co-operation is beneficial for Qatar and more widely for the global oil & gas industry. Similarly, the Qatar science and Technology park now host large research programs with many major oil companies and service providers. Let's welcome new opportunities to work internationally to take advantage of human ingenuity in the fields of energy and environment. Furthermore, it is becoming increasingly important to develop technologies that enable us to meet our energy needs in a safe and environmentally responsible manner. In this area, like in many others, entrepreneurs and small companies have the potential to provide innovative solutions. They are the key to unlocking the potential of an even more technology driven energy era In this regard, the Qatar Science and Technology Park offers a unique business environment for start-up enterprises in the areas of energy and environment among other. After the COP 17 meetings in Durban, it has become apparent that considerable work remains to be done before any collective international response to climate change is agreed. Despite this, we are already seeing significant advances in increasing energy use efficiency and renewable energy technologies. This includes developing technologies that will allow us to mitigate greenhouse gas emissions and adapt to the impacts of climate change. While these developments will undoubtedly impact the global energy outlook on the long term, it remains clear that fossil fuels will continue to be the center piece of the energy equation for several decades to come. I remain a firm believer of the robustness and resilience of the energy industry. The unprecedented rise of demand for energy can be met if we plan the right investments at the right time in a sustainable way.(END)