The Middle East Energy

Jordan’s massive stores of oil shale have been the topic of much discussion lately, with investors keen to help the kingdom harvest the energy locked in the layers of rock underfoot.

Having established itself as the world’s leading supplier of liquefied natural gas (LNG), Qatar is now looking to bring a new processing facility online to support a projected jump in local industrial activity.

Saudi Arabia has boosted oil production to near record highs, reaching levels of output and exports not seen since before the global economic crisis. According to official data issued in mid-August by the Joint Organisation Data Initiative (JODI), Saudi Arabia increased its crude oil production from 8.89m barrels per day (bpd) in May to 9.76m bpd in June, with overseas shipments averaging 7.38m bpd, the highest since October 2008.

With a recent increase in oil production and global crude prices above $100 per barrel, Kuwait is expected to run a substantial fiscal surplus in 2011 thanks to its hydrocarbons export revenues. But the country is looking beyond the market for crude oil and investing in refineries both at home and abroad.

With the recent addition of a new 1400-MW power plant, Kuwait appears ready to meet the increase in electricity demand that occurs every summer. Government authorities are also planning to bring additional capacity on-line over the next few years, with the private sector expected to play a major role in this expansion.

Regional events are forcing Jordan to look past its traditional sources of energy, both in terms of feedstock and physical location. Disruptions in the supply of natural gas to the kingdom coupled with rising costs, mean it may look elsewhere for feedstock, while also pushing forward with its own nuclear energy programme.