Gas to Fuel Middle Eastern Power Sector for 20 Years
Source: SteelGuru (5/23/11)
"Natural gas will remain the dominant fuel choice for the power sector."
Trade Arabia reported that natural gas will remain the dominant fuel choice for the power sector in the Middle East over the next two decades.
At the same time, high oil prices will likely be detrimental to oil fired generation. The share of the oil fired generation in the electricity mix is projected to decline from 36% in 2008 to 13% by 2035, according to the report 'Empowering Ideas 2011: A Look at Ten of the Emerging Issues in the Power and Utilities Sector' from Deloitte Touche Tohmatsu Limited.
Mr. Peter Bommel DTTL Global Industry Leader for Energy and Resources said that "The impact of the events in Japan on the nuclear industry will be both profound and long lasting. As the demand for energy continues to increase, energy companies will face formidable challenges in balancing safety concerns with energy demands."
Now in its second year, the report offers insights into issues and trends in the coming year and identifies opportunities and challenges. The report includes the prediction that governments, utilities and consumers will increasingly tap into energy efficiency and demand side management programs in order to address these challenges globally and in the Middle East.
Mr. McKellar partner and Middle East energy and resources leader at Deloitte Middle East said that "Although the region has weathered the recent economic crisis better than most due to its growing population, the Middle East will require significant investment in generating capacity and networks to produce the required energy for business and domestic users."