Middle East oil industry key for global growth, expert says

Feb. 25, 2014

Part of the Western world is underestimating the importance of the Middle East as a result of the shale revolution in the United States but this may be too hasty a reaction.

Part of the Western world is underestimating the importance of the Middle East as a result of the shale revolution in the United States but this may be too hasty a reaction, according to the chief economist of the International Energy Agency (IEA).

In an exclusive interview with FuelFix, Fatih Birol commented that predictions that the United States will overtake Saudi Arabia as the largest producer of oil in the world may be true but assuming that this is going to diminish the significance of the region is misleading and should be considered wrong from an economical and political point of view because the consequences of such a claim may be "substantial."

RELATED: IEA releases global energy demand trends through 2035

According to Birol, it may result in diverting investments for new oil fields exploration away from the Middle East, which may have a negative effect on the oil industry in the long run. Chances are, growth from that part of the world will be needed over the years to come, he explained.

In November 2013 the IEA estimated that U.S. oil production would surpass that of Saudi Arabia in 2015 but this does not change the fact that the Middle East countries will still play a major role on the global oil market, Birol said. If exploration for new oil fields is hindered, there would be no way to meet the increase in global oil demand, especially in Asia, he concluded.

Sponsored Recommendations

Choosing The Right Partner for CHIPS Act Investments

As the U.S. looks to invest in the semiconductor research and production using CHIPS Act 2022 funding, it's important to choose the right partner.

EMWD Uses Technology to Meet Sustainability Goals

Eastern Municipal Water District pilots artificial intelligence-enabled control and machine learning to help save energy, reduce costs, and improve quality.

Protein Processing Solutions: Automation & Control

For protein processors looking to address industry challenges, improve efficiency, and stay ahead in a competitive market, Rockwell Automation offers tailored automation, control...

Automotive Manufacturing Innovation: Smart Solutions for a Connected Future

Rockwell Automation provides automation and control systems tailored for the automotive and tire industries, supporting electric vehicle production, tire production, battery production...