The challenge of shale to the post-oil dreams of the Arab Gulf

摘要

Growth patterns in the Gulf Cooperation Council (GCC) countries suggest that demand for energy in this region is likely to increase in the years to come and this situation ultimately means that more of the region's natural resources will need to be devoted to meeting this demand. For some of the GCC countries, the option to meet future power demands through alternative sources of energy such as nuclear power was deemed an attractive proposition. Furthermore, real investments and plans to use other alternative energy sources such as solar, wind, hydrogen and geothermal are also gaining momentum in the region. However, relatively recent developments in the technology used for extracting gas and oil from shale rock formations places a big question mark on the GCC countries' energy plans including those relating to alternative and renewable sources of energy. This article examines the GCC's new energy drive and explores the economic and political motivations behind it. Furthermore, the article also examines the potential impact of shale gas and oil extraction on this region's abundant fossil-based resources and the ramifications of such impact (if it materialises) for the GCC countries' alternative energy plans, future wealth and their political stability.