NATURAL GAS SHORTAGE

When summer's heat rises and demand for air conditioning spikes, natural gas-fueled power generation is now sometimes done in these Gulf states with what the article calls “alternative” fuels, by which people there mean gas oil.

Gas shortage
July 30-August 5, 2007, (Oil & Gas News)

WHO
UAE energy minister Mohammed Al Hamli

WHAT
Despite enormous reserves, Arabian Gulf oil and gas producers are currently struggling to meet regional natural gas demand.

Production and consumption just do track, so a spike in demand may not be easily met. (click to enlarge)

WHEN
Al Hamli described the period necessary to meet demand as “some time.”

WHERE
Abu Dhabi, the UAE, Oman, Kuwait and throughout the Gulf region.

WHY
- The article claims the flood of petrodollars resulting from the jump in prices for crude oil has caused a spike in regional (and worldwide) natural gas demand that producers lack adequate infrastructure to meet.
- Al Hamli said gas fields remain untapped due to a lack of storage and transport equipment.
- Al Hamli said the Gulf region nations have been forced to go after tougher-to-reach reserves and to shop for imported supplies.

A slide from a Matthew Simmons presentation shows that natural gas supplies throughout the region are changing. (click to enlarge)

QUOTES
Al Hamli: “The region is so rich in hydrocarbons, but it is struggling to find gas supplies…Demand has taken the region by surprise ... The basic problem was there was lack of planning…It costs me three times more to burn gas oil compared to today’s market for gas…”