Name:Omar Abd el majeed mohammed
class:
8k
studies English
subject: social
teacher
: mr.mounir
The United Arab Emirates (UAE) is a federation of seven different emirates which together comprise the third largest economy in the Middle East behind Saudi Arabia and Iran. Its per capita GDP is second only to Qatar. The UAE is an important producer of natural gas and oil, ranking seventh globally in total proven reserves of both. Abu Dhabi possesses the majority of oil and natural gas reserves followed by Dubai, with small amounts in Sharjah and Ras al-Khaimah. The country is also a member of the Organization of Petroleum Exporting Countries (OPEC). Despite having the most diversified economy in the Middle East, the UAE remains largely dependent upon the hydrocarbons sector for economic growth. The governments hydrocarbon policy will continue to focus on oil, however natural gas projects are gaining significance and investment. Rising domestic demand for subsidized energy and electricity has caused the UAE to become a net importer of natural gas and strained volumes of liquids available for export.
The UAE government is pursuing economic diversification through investment in infrastructure in transport, trade and tourism. Abu Dhabi has made a concerted effort to increase its industrialization through projects such as the Khalifa Industrial Zone Abu Dhabi (KIZAD), which will allow 100 percent foreign ownership of companies. This infrastructure project will be one of the largest integrated industrial zones in the world and will further serve the aims of economic diversification held by the government. Dubai has burgeoning financial, real estate, and tourism sectors. Although the economic crisis necessitated Abu Dhabi to bail out the most prominent of Dubai's state-run firms, Dubai World, these financial difficulties have not precipitated a flight of foreign capital. The UAE has returned to positive and increasing growth once again, with a real GDP growth forecast of 3.1 percent for 2011. Consumption of total primary energy reached 3.257 quadrillion BTUs in 2008. Of that total, approximately 70 percent came from natural gas for electricity generation, consuming 2.198 quadrillion BTUs, while 1.06 quadrillion BTUs of petroleum products were consumed.
According to Oil & Gas Journal, the UAE has 97.8 billion barrels as of January 1, 2011, making up 7 percent of global oil reserves. The UAE has been able to maintain its proven reserves over the last decade primarily due to enhanced oil recovery (EOR) technologies increasing extraction rates of mature oil projects combined with higher oil prices making more reserves commercially viable. Few new concessions have been made, as exploration has met with little success and most foreign companies lack market access. However, in late 2008, Occidental Petroleum won the first concession offered in decades, earning the right to develop the Jarn Yahpour and Rahman oil fields.
Exploration and Production In 2010, the UAE produced approximately 2.81 million barrels per day (bbl/d) of total oil liquids, of which 2.3 million bbl/d was crude oil. Crude oil production capacity is currently estimated at 2.6 million bbl/d. However, increases in capacity have not affected production due to limits imposed by OPEC, which constrain UAEs production around the quota of 2.223 million bbl/d. The government has pushed back plans to increase capacity to 3.5 million bbl/d to 2018, pending acceptance of fellow OPEC members.
Much of the oil production in the UAE is from the Zakum oil system, a collection of oil fields which together make up the third largest oil zone in the world. The Upper Zakum field is run by ZADCO, 60 percent owned by ADNOC with the Japanese Oil Development Company (JODCO) and ExxonMobil holding the remaining stakes. In order to boost production capacity, ZADCO is reviewing the possibility to use extended reach drilling from four artificial islands to expand production from the current 550,000 bbl/d to 750,000 bbl/d by 2015, increasing the oil recovery rate to 70 percent. The largest onshore oil fields are operated by ADCO. ADCO operates the Bu Hasa oil field, which produces as much as 600,000 bbl/d, as well as the Murban Bab, Sahil, Asab, and Shah oil fields, contributing another 705,000 bbl/d of light, sweet crude. Additionally, two new fields are being developed by ADCO, Qusahwira and Bab oil fields, adding 250,000 bbl/d by 2014. ADCO will also redevelop Bida al-Qemzan field, adding 20,000 bbl/d to its current production of 225,000 bbl/d by the third quarter of 2012. These projects are components of a plan to boost ADCOs aggregate production to 1.8 million bbl/d from its current 1.4 million bbl/d by 2017. ADMA-OPCO operates the main offshore assets in Abu Dhabi, which have been in redevelopment to maximize output. The Umm Shaif and Lower Zakum offshore oil fields have a capacity of 520,000 bbl/d combined, although after an expansion at each they will have a production capacity of 425,000 bbl/d and 300,000 bbl/d, respectively. Two new oil fields have also come into development: Nasr and Umm al-Lulu. These will add a further 170,000 bbl/d capacity by 2018. Dubai and Sharjah produce relatively minor amounts of crude oil. Dubai adds 100,000 bbl/d from four separate fields, the older and more abundant Fateh
and Southwest Fateh oil fields, with extra production from the Falah and Rashid fields. Sharjahs only significant oil field is the Mubarak field, which produces 60,000 bbl/d. Sharjah-based Crescent Petroleum operated this field for 35 years before handing control to the government in December 2009. Exports In 2009, the UAE exported 2.32 million bbl/d, predominantly to Asian markets. Japan is the main market for UAE petroleum exports, encompassing 40 percent of its export volumes. South Korea and Thailand are the other major destinations for Emirati crude. The Abu Dhabi National Tanker Company (ADNATCO) is the subsidiary of ADNOC responsible for the transportation of petroleum products. Its fleet includes 2 build carriers and 2 tankers, however it is currently in negotiations to acquire a further 6 tankers and 7 bulk carriers of various sizes. Fujairah is rapidly expanding its export capability. A second oil terminal, composed of 3 moorings and a new 4-berth facility for tanker bunkering, has been built, as well as storage capacity and a 400,000 bbl/d terminal for refined products and petrochemicals, all of which are expected to be operational before the end of 2012. Due to its location on the coast of the Arabian Gulf, the UAE also has a number of ports for shipping its oil exports.
Downstream/Refining According to Oil and Gas Journal, the UAE had 773,250 bbl/d of refining capacity at 5 facilities as of January 1, 2011. The two largest refineries are found in Abu Dhabi Ruwais and Umm al-Nar with capacities of 350,000 bbl/d and 150,000 bbl/d, respectively. The third notable refinery is the 120,000 bbl/d Jebel Ali facility, located in Dubai and operated by the Emirates National Oil Company (ENOC). IPIC is also planning a 300,000 bbl/d refinery integrated to the export facilities at Fujairah, although this has been on hold since 2007, when Conoco announced a pull-out from the project.
Natural Gas According to Oil and Gas Journal, the UAE possesses 214.4 trillion cubic feet (Tcf) of proven natural gas reserves as of January 1, 2011, although some industry estimates place it slightly higher at 227.2 Tcf. This amounts to the seventh largest natural gas reserves globally, following Russia, Iran, Qatar, Saudi Arabia, Turkmenistan and the United States. The majority of these reserves are located in Abu Dhabi (198.5 Tcf), with marginal amounts found in Sharjah (10.7 Tcf), Dubai (4 Tcf), and Ras al-Khaimah (1.2 Tcf).
