Abstract

The nearly $100 billion in megaprojects planned for Mozambique, for example, is more than 400 percent of the country's total GDP, and the planned oil and gas investments in Papua New Guinea are 123 percent of GDP. Even in large, developed conomies, the size and scale of new oil and gas investments can represent a significant portion of the total economy. The combined value of Australia's new oil and gas projects represents nearly 20 percent of the country's $1.5 trillion GDP for 2012. The economic benefits to the country of getting the projects right are enormous(Deloitte, 2013).

Consumption and Production increased for Oil & natural Gas to record levels across the globe. As per the BP Statistical Review of World Energy issued in June 2014, of the total world energy consumption, a staggering 57% is from Oil & Natural Gas. The world oil Consumption has increased by 9.96% and the world oil Production has increased by 7.1% since 2004. Of the total 86.8 Million Barrels of Oil Produced per (BOPD) 32.6% is produced by Middle East and 4.2 % by UAE alone. Similarly of the total 326 Billion cubic feet per day (BCFD) natural gas produced worldwide 16.8% is produced from Middle East of which UAE produced 1.7% (BP, 2014).

In its World Energy Investment Outlook 2014, the International Energy Agency (IEA) estimates a cumulative investment of US$22.4t in the global oil and gas sector between 2014 and 2035, equivalent to an average annual spend of more than US$1t. Middle East is expected to invest around US$ 206b between the period 2014 and 2035. The IEA expects oil and gas spending to increase sharply, increasing by almost 50% from its average of US$678b per year over the 2000–2013 period (EY, 2014). Figure 1.1 shows the Regional cumulative Oil & Gas ivestments between 2014 and 2035.

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