Gulf oil and gas company dubai
Onshore production totaled million barrels in In the amirate granted a concession to the D'Arcy Exploration Company of Britain to look for oil in offshore and submerged areas not covered in the ADPC concession. The company made its first commercial strike in , and production and export started in The island of Das, northeast of the island of Dalma, became the center for offshore operations. Unlike most gulf countries, as of the end of Abu Dhabi had not claimed percent ownership of its oil industry.
In the Das facility produced nearly 2. Total refining capacity in was , bpd, of which , bpd was available for export. The amirate's exports are pumped through terminals at Jabal az Zannah and on the island of Das.
There is a smaller terminal at Al Mubarraz. That same year, DPC acquired 50 percent of Duma and released some of its shares to other companies. Oil was discovered offshore in , and production commenced in late Dubayy's oil reserves in were estimated at 4 billion barrels, which will run out by if levels of production continue.
Dubayy's production policy has been to ignore OPEC quotas for the most part, concentrating on exploiting the amirate's fields as efficiently as possible. This has meant producing at or near capacity most of the time. The principal fields are Fath, Rashid, and Falah offshore, and Margham onshore. The amirate has two refineries, with a third planned for the mids. The Dubayy government established the Dubai Natural Gas Company Dugas in to process gas from offshore oil fields.
By the early s, the company also planned to process associated gas from the onshore Margham field. The Dugas processing facilities at Mina Jabal Ali came on-line in with a capacity of 20, bpd of natural gas liquids propane, butane, and heavier liquids and 2.
The dry gas is piped to the Dubai Aluminum Company Dubal , where it fuels a large electric power and desalination plant. A small part of the natural gas liquids is locally bottled and consumed, but most is exported to Japan. A special gas terminal at Mina Jabal Ali that can handle tankers of up to 48, tons opened in The amirate's gas reserves are estimated at billion cubic meters. In the amir of Sharjah granted a forty-year concession for offshore exploration and production to a consortium of small United States oil companies known as Crescent Oil Company.
Oil was discovered in in the Mubarak field off the island of Abu Musa, and production began in Because of conflicting territorial claims, Sharjah has production and drilling rights but shares production and revenue with Iran 50 percent , Umm al Qaywayn 20 percent , and Ajman 10 percent.
By about , Iran reportedly ceased transferring to Sharjah its half-share of oil revenues, presumably because of the financial drain of the war with Iraq, as well as Arab support of Iraq. In Iran attacked the facilities at Mubarak, causing their closure for two months. By late , output reached 35, bpd of condensate, which was exported. In total production reached 62, bpd. In the same year, the Emirates General Petroleum Corporation completed a kilometer pipeline to supply dry gas to power plants in the northern amirates.
Global oil consumption contracted in both and , during the worst global recession in decades. As the economic crisis recedes, energy forecasters predict that oil demand will gradually recover, albeit more slowly than previously expected. The International Energy Agency forecasts global oil demand of million bpd in , up 24 per cent from 85 million bpd in It means the new capacity should be needed and will not sit idle.
The prospect of maintaining costly spare capacity was not something that troubled most oil exporters before During , however, OPEC spare capacity quadrupled to about 6 million bpd as oil demand slumped. The UAE idled approximately 20 per cent of its oil production capacity in in response to the deep cuts to OPEC production targets. The initiatives were undertaken amid signs that oil demand in the developed world was threatened by economic stagnation, while new international agreements to curb carbon emissions seemed likely to limit growth in global oil demand.
Facing an array of new challenges, the UAE has therefore adapted its oil policies to strike a balance between its national and international responsibilities.
At home it must focus on developing its hydrocarbon resources prudently, with the long-term aim of optimising revenue to fund economic diversification. At the same time, as a member of OPEC, the UAE has a responsibility to the world at large to contribute to secure and reliable oil supplies that meet global demand. Additionally, the nation recognises it must play a part in mitigating climate change by taking action to curb carbon emissions.
In the short-term, the UAE also faces a domestic gas crisis which is threatening the reliability of its electricity supply. Lower crude output means lower produced volumes of associated gas.
Compounding the problem, Abu Dhabi, which was the first Gulf state to produce liquefied natural gas LNG , has long-term contractual commitments to export gas. In the longer term, the UAE is pursuing plans to diversify its domestic energy supply to include nuclear and solar power, which should lessen the pressure on its gas supplies. Further gas development, however, will be essential if population growth and industrial expansion continue as forecast.
First, the UAE is pressing ahead with plans to expand oil and gas production capacity, but has extended the time frame for oil development while giving higher priority to gas projects. Second, government and industry have joined forces in initiatives to develop new oil markets.
Third, several emirates have launched programmes to bolster energy efficiency and encourage energy conservation, reflecting the growing public awareness of the need to reduce carbon emissions. Some of these directly involve the oil and gas sector. Fourth, the nation is moving ahead with low carbon and clean energy developments, with close co-operation from oil and gas producers. Fifth, it is fostering international energy partnerships and participating in more overseas energy projects.
That is enough oil to last for more than a century and sufficient gas for more than year of supply at recent production rates. The Shah reservoir contains so-called ultra-sour gas, consisting of about 30 per cent hydrogen sulphide. The deadly gas could endanger humans and livestock if allowed to leak into the atmosphere and could damage the environment. Gas fields with similar hydrogen sulphide concentrations have been developed elsewhere in the world, but not often.
ConocoPhillips, however, is a world leader in the safe exploitation of such reservoirs and will help ADNOC develop similar expertise. As a spin-off from the Shah project, Abu Dhabi will become the leading regional exporter of sulphur, which is used to make fertilisers, rubber and sulphuric acid. They include four more projects to expand gas production and six aimed at oil development.
Two more projects are planned to exploit sour gas fields, one onshore and one offshore. In total, Adco plans to increase oil production capacity by , bpd to 1. Offshore, the Abu Dhabi Marine Operations Company Adma-Opco is moving ahead with a ten-year plan to increase output from two major Gulf oil fields, Umm Shaif and Lower Zakum, to 1 million bpd by from about , bpd in The unit also plans to develop three smaller fields that are expected to yield another 76, bpd of crude oil.
The Zakum Development Company Zadco , another ADNOC offshore oil subsidiary, is proceeding with a project to increase output from the Upper Zakum field by about 50 per cent to , bpd following the completion of a reservoir study. In November of that year, it awarded a contract for dredging work required to build four artificial islands to support drilling rigs for the project.
The decision to proceed with the project during a sustained downturn in refining margins is part of a strategic move to capture a greater share of the global market for refined oil products when the economy recovers.
By it had dropped to 80, bpd. As a result, the second largest UAE emirate has swung from being a net oil exporter to importing most of its petroleum requirements. While it continues to pump gas from offshore fields, Dubai also consumes more of that fuel than it produces, and is increasingly dependent on imports to make up the difference. The emirate already purchases several hundred cubic feet per day of gas from Dolphin Energy, an Abu Dhabi company that imports gas by pipeline from Qatar.