Describe the energy production and consumption in the Middle East.
Energy demand in the Middle East is expected to increase by 60% by 2035. Despite the fact that the Middle East holds more than 40% of the global oil and gas reserves, meeting local and global future energy demands will be a major challenge.
It is evident that the global energy system will go through a major transition this century. Shell expects the global energy supply mix to evolve significantly in the decades ahead, with gas, the cleanest burning fossil fuel, becoming more widely used for power generation. While we expect renewables such as wind, solar, and biofuels to play an increasingly important role, oil and gas will be vital to meet the considerable expected increases in energy demand. Building a sustainable energy future is a complex challenge. Irrespective of how long the transition will last, technology innovation will be a crucial driver and will play a vital role to facilitate the transition.
It is imperative for our industry that we maximize the economic ultimate recovery from our existing fields. With the global average field recovery from waterflooding currently being around 35%, leaving from 60% to 70% of the oil in place is a very large opportunity. However, many current and future development opportunities are dominated by complex improved oil recovery (IOR) and enhanced oil recovery (EOR) projects, challenging fluids (heavy oil and sour gas), challenging reservoirs (tight formations, deep reservoirs, high temperature and high pressure), or challenging environmental settings (deep water and Arctic).
Shell has been deeply committed to EOR technology deployment for more than 40 years, throughout the time that EOR has been featured on the industry agenda. In-depth knowledge and an extensive tool box of proven and novel recovery technology solutions are the result.
The Middle East is an important region for Shell and we are proud of the many long-standing partnerships we have established. We have worked with Petroleum Development Oman (PDO) for many decades. Our relationship with the UAE dates back more than 75 years. We are also involved in major projects elsewhere in the region: in Qatar, Saudi Arabia, Kuwait, Egypt, and Iraq.