Gas crunch likely as Mideast races to meet local needs

Dubai: Flush with cash from record oil revenues, Middle East crude producers have spent billions on economic development and now find themselves short of another energy source needed for growth – gas.

The Middle East holds around 40 per cent of the world’s gas reserves, but produces only around 10 per cent of global supply.


The gap points to the potential for a jump in future production that the US and consuming countries in Asia and Europe hope would mean higher exports.

But regional demand growth of up to 10 per cent per year is eating into export potential. Widening supply deficits are forcing governments to emphasise meeting domestic needs.

Reuters