Energy

As the first GCC country to discover hydrocarbons, Bahrain is now moving into a new period in its history where more complex techniques are required to extract its oil and natural gas deposits. Given that high oil prices have helped sustain the oil sector’s export earnings and contribution to the economy, the Kingdom has undertaken a renewed effort to increase its crude oil output. The country plans to invest more than $20bn in the energy sector over the next two decades. Some $10bn-15bn is earmarked for upstream exploration and increased production from onshore and offshore fields, while $5.7bn will be used to modernise and upgrade the country’s refinery at Sitra. The Kingdom is also planning a new LNG import terminal, which will give Bahrain the option to secure foreign sources of gas. However, with the output of hydrocarbons steadily falling since the 1970s, greater use of renewable energy in power generation projects is expected in the near future, with a host of solar and wind energy projects already in the pipeline. This chapter includes an interview with Abdul Hussain bin Ali Mirza, Minister of Energy.