DUBAI, UAE (9 September 2014)—The increased competitiveness of the United States petrochemical industry due to the discovery of large reserves of shale gas has impacted the Middle East, which is already grappling with reduced natural gas supplies. The adverse effects of these developments have been particularly felt by the Gulf Corporation Council (GCC) countries. Once the exporting hub for natural gas, the region has now transformed into an import destination as the demand for fossil fuel exceeds its supply. This demand-supply gap across most parts of the Middle East has changed the competitive dynamics in the global energy market and demands quick remedial measures. New analysis from Frost & Sullivan, Impact of U.S. Shale Gas Boom on Middle East Petrochemical Feedstocks, finds that the assessment of shale gas resources in the Middle East has assumed critical importance since yields from conventional natural gas sources are fast declining. New unconventional energy discoveries are essential to ensure sustainable gas supplies and to re-energize the region’s petrochemical industry. “It will be prudent to unearth and tap the large volumes of shale gas believed to be trapped in various countries across the region,” said a Frost & Sullivan Chemicals, Materials & Food Research analyst in the report. “The Kingdom of Saudi Arabia alone is likely to hold reserves close to 650 trillion cubic feet. While it might not be economically viable to retrieve all these reserves, significant volumes can certainly be exploited.” Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Tue, 09/09/2014 - 00:00