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Since 2004, the UAE has been governed by Sheikh Khalifa – the older son of the state’s founder Zayed Bin Sultan Al Nahyan Full version

Oil and gas industry in the United Arab Emirates

Article image: Oil and gas industry in the United Arab Emirates

Oil and gas in the UAE represent one of the core elements of the UAE national economy. Since the opening of the first oil fields, this economic sector has completely replaced such traditional activities as pearl fishing, date palm plantations and fishery. The products of the oil industry are also the main source of revenue from the export of raw materials. The industry of oil and gas has provided the United Arab Emirates with a sufficiently high level of per capita income.

It should be noted that the Government of the UAE carries out an active diversification of the national economy. In particular, all the assets coming from the oil and gas sector are invested into the other industries such as tourism, trade, agriculture, manufacturing industry and social sector. Thus, oil and gas in the UAE made it possible to create a well-developed infrastructure and to attract foreign investors. Experts note that the share of the oil and gas industry in the GDP decrease constantly and gives a way to other industries.

Oil and natural gas in the UAE – production infrastructure

As to the oil extraction, a system of pipelines, which connects field facilities, refineries and port terminals, is created in the United Arab Emirates. The same piping system enables an effective operation of the companies involved in the gas sector. A gas pipeline, which connects the Emirates and Qatar, is one of the major regional projects.

The larger share of the oil produced on the territory of the United Arab Emirates is being exported. Export of the oil and gas sector products is carried out in various ways. The United Arab Emirates is located in the Persian Gulf and has shipping ports for international transportation. Shipping terminals are supplied with the modern equipment and the appropriate infrastructure. Transportation is carried out by oil tankers. Japan, South Korea, Thailand, the countries of Western Europe and the USA can be distinguished among the main importers of oil.

Gas production in the UAE

Natural gas in the UAE is the main resource for the electric energy production. Moreover, experts note a gradual increase in domestic consumption over the volumes of natural gas production. A stable economic and population growth stimulate the government to increase the volumes of the produced gas constantly, and also contribute to the search for new alternative energy sources.

Despite the fact that the gas production in the UAE is of a relatively high prime cost and there are certain difficulties in the course of extraction, production volumes are characterized by the annual growth. The development of a network of the connecting pipelines and the construction of modern processing plants both within the country and abroad contribute to the increase in production volumes. Today, natural gas in the Emirates is used not only for the production of electrical energy, but it is also used in the process of oil production for pumping into the wells and for desalination of water resources.

According to the independent experts, natural gas consumption in the United Arab Emirates has doubled over the last decade. Both growth of the domestic demand and the ever increasing demands of the oil and chemical industries contribute to the expansion of the area of natural gas usage.

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