GRM 2010 GRM 2011

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Gulf Cooperation Council (GCC) strategy for facing the Shale revolution and Challenges from Iran
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Gulf Cooperation Council (GCC) strategy for facing the Shale revolution and Challenges from Iran
-Dr. Mahendra Pratap Rana-

Gulf Cooperation Council (GCC) is a political and economic alliance established in Riyadh, Saudi Arabia, in May 1981. The current 45 percent share of the Gulf Cooperation Council (GCC) countries to the world oil reserves is predicted to rise to 70 percent during the first decades of the current century, according to the latest report by the Kuwait-based Diplomatic Center for Strategic Studies (DCSS). It is further mentioned in the report that the GCC countries captured 25 percent of total world oil crude exports and retained 17 percent of world proven gas reserves. Crescent Petroleum released a data showing the six GCC countries plus Iran and Iraq, constituting 56 percent and 40 percent of the world's conventional oil and gas proven reserves.

The Gulf Region produced over 25.2 million barrels of oil per day, and 44.6 billion cubic feet of natural gas per day, accounting for over 30 percent of the world's oil production, 15 percent of gas production, and 32 percent of liquefied natural gas (LNG) exports. The world oil consumption is going to increase many folds in the coming decades. International Energy Outlook has projected the oil consumption to increase by over 50 percent by 2030. At the same time, Iranian government’s proposed a long term road map to attract foreign private and national oil companies to invest in the Islamic Republic and plans revival of pipelines and liquid natural gas has posed another challenge to the GCC countries.

Strategies and Challenges before GCC countries:

1. The GCC countries through negotiations with other oil and gas producing countries should play a vital role in deciding oil and gas prices in the world market.

2. To restrict American and other European countries dominance in world oil and gas market, the GCC countries, should take help of the non-oil and gas producing countries (big oil and gas consumer market).

3. To minimize the potential challenge coming from Shale oil and gas and also from Iran, GCC countries must introduce liberal policy to attract foreign private investors in oil and gas sectors and expansion of market.

4. Technological advancement for oil exploration to match with the rest of the oil producing countries.

5. The GCC countries need to make long lasting partners with industrial and emerging countries, like, Brazil, China and India.

6. Regular monitoring of the market and avoid any conflicting situation.