Gulf needs to tap associated gas from oil wells

Tag : gas separation

However, this technology has yet to be utilised optimally in theGulf. According to Western reports, associated gas worth $10billion is flared every year in the Middle East. This is a waste ata time when most of the region's countries face a shortage innatural gas.
The region relies on gas for power generation, the need for whichdoubles every decade. The second reason is the establishment ofpetrochemical, aluminium and steel industries, all of which dependon natural gas.
Energy cost constitutes 30 per cent of the total cost of aluminiumand steel production, while petrochemicals rely on natural gas asan indispensable primary material.
Water desalination projects, an increasing population, theconstruction boom and the expansion in the service and tourismsector also creates a need for gas.
Gas pipelines have become one of the most important assets ofenergy supply due to the growing demand for natural gas. Forexample, we cannot imagine Europe's energy map without gaspipelines spreading across the Russian lands to many Europeancountries.
These pipelines were set up during the peak of the Cold War betweenthe Eastern and Western camps in the 1970s.
Cooperation
Energy cooperation in the region is important in view of theskyrocketing oil prices, as well as the shortage in gas supplies.This has had a negative impact on growth in some economic sectors,especially electricity and manufacturing.
The $10 billion worth of flared associated gas would make adifference to the situation. The region needs to coordinate effortsto make use of this wealth by building proper infrastructure toutilise the gas.
Coordination between the Gulf states could help reduce the cost ofseparating gas from oil and speed up the development of newtechnologies.
A portion of the annual $10 billion can be reinvested in MiddleEastern countries that enjoy abundance of water to develop foodproduction, especially in view of the growing global demand, andthe resulting high prices
It is possible for countries in this region to be successful ifthey resolve political differences that block cooperation.
We need to learn a lesson from the eastern and western campaigns,which forged a successful strategic partnership in the energy field40 years ago despite their differences.
The partnership contributed to the development of many economicsectors in both sides.
In return for energy supplies, East Europe acquired modernequipment and technologies that helped develop its factories andproductive institutions.
To achieve this goal, the Gulf needs to separate politicalvariations from economic interests in a manner similar to theprocess of separating gas from oil.
The writer is a UAE economic expert.