UAE Energy Minister’s remarks on reserves/depletion.

http://www.gulf-news.com/Articles/BusinessNF.asp?ArticleID=143771

Mohammad Bin Dha’en Al Hamili, UAE Minister of Energy-

CLIP >>Al Hamili said most of the oil in the world had been more or less discovered. “I can’t see more giant oil fields being discovered. Now we are looking to better the recovery rates and arrest the depletion in reservoirs. “In some of the old giant fields, the rate of depletion is as high as 15 per cent,” he said.<< Oil will continue to play key role, say ministers
Dubai | By C. L. Jose, Staff Reporter | 15/12/2004 | Print this page

Although crude oil prices touched a record high of more than $55 per barrel, no Gulf country has been able to get this price, said Qatar’s Minister of Energy and Industry.
“Gulf crude never fetched more than $45 a barrel,” Abdullah Bin Hamad Al Attiyah, Second Deputy Prime Minister and Qatar’s Minister of Energy and Industry, said during the third session of Energy in 2020 the Future of Oil and Gas.

The oil ministers of the UAE and Qatar ruled out the possibility of oil declining in importance as an enregy source by 2020, during the Arab Strategy Forum yesterday.

The session was moderated by Hussain Sultan, Group chief executive and board member of Emirates National Oil Company (Enoc).

However, Mustapha Muhtaram, chief econ-omist for General Motors Corporation, said the move towards reliance on alternative energy sources could not be ruled out.

He said General Motors had already chalked out short-term, medium-term and long-term strategies for this.

While the medium-term strategy hinged on hybrid auto engines, the long-term strategy examined the scope of hydrogen being used as a power source.

“Oil will continue to play a very strong role. There will be more need for oil,” said Al Attiyah.

Mohammad Bin Dha’en Al Hamili, UAE Minister of Energy, said the demand for oil was expected to grow by 1.7 per cent between now and 2020.

Dr Adnan Shihab Al Din, research director for Opec, said while the average Opec basket during 2000 was $25.80 per barrel, in the 11-month period during the current year it was $36.

Lord Howell of Guildford, former UK Energy Secretary, told delegates oil was in Arab hands and so was its potential.

They had to govern well or they would frighten away the investing public and let extremists in. The Arab oil ministers’ comments were supported by Lord Howell.

“Demand for oil will go roaring onwards. There may be hiccups but it will go on. I believe the possibilities are increasing and are very positive,” Lord Howell added.

He saw a bright future for oil for several reasons. He said the risk and costs were very high for non-Arab or non-Opec (Organisation of Petroleum Exporting Countries) sources of oil and alternative sources of energy were not working.

Al Hamili said most of the oil in the world had been more or less discovered.

“I can’t see more giant oil fields being discovered. Now we are looking to better the recovery rates and arrest the depletion in reservoirs.

“In some of the old giant fields, the rate of depletion is as high as 15 per cent,” he said.

Al Hamili said Opec had been doing well.

“Opec, actually, is excellent when it comes to crises management. We have seen the prices go down to about $8 per barrel. Opec worked very hard to bring it up.

“Opec is responsible and wants to continue to supply the consuming countries. The consuming countries also do not want the prices to fall too low as they want to see Opec invest in building more capacity,” Al Hamili said.

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