Event Report – Petro Diplomacy: Gulf Countries on the Front Line of Energy Security
The Arab Gulf States Institute in Washington's eighth annual Petro Diplomacy conference examined the upheaval in the oil and gas markets following Russia’s invasion of Ukraine and the role of Gulf Arab oil producing states in meeting the sudden demand surge.
'A facility operated by oil and gas services company Lamprell in Dubai, United Arab Emirates, June 24. (Lamprell/Handout via REUTERS)'
The Arab Gulf States Institute in Washington held its eighth annual Petro Diplomacy conference from October 20-21. The event examined the upheaval in the oil and gas markets following Russia’s invasion of Ukraine and the role of Gulf Arab oil producing states in meeting the sudden demand surge, as a cascade of economic and energy sanctions disrupted oil and gas flows from Russia.
Held in hybrid format over two days, the conference was broken up into three sessions. In the first panel, speakers discussed the state of the oil market in light of the Ukraine crisis and sanctions against Russia and how these developments are affecting demand for Middle Eastern crude oil and whether the surge in demand for crude oil is a permanent trend. The second session explored how reduced flows of natural gas from Russia are impacting the market and the role that the Middle Eastern producers could play in filling the gap. The third session debated the implications of the decision by the OPEC+ alliance of OPEC and non-OPEC oil producers to make a steep cut to production quotas and its ramifications for U.S.-Saudi relations.
This paper is the report for the 2022 Petro Diplomacy conference. For the eighth consecutive year, AGSIW convened its Petro Diplomacy conference, held in a hybrid format for the first time. The conference brought together private and public sector stakeholders from the United States, Europe, and the Gulf Arab countries, at a particularly critical time, to discuss the upheaval in the oil and gas markets following Russia’s invasion of Ukraine and the role of Gulf Arab states in meeting the sudden demand surge, as international sanctions disrupted oil and gas flows from Russia.
The views represented herein are the author's or speaker's own and do not necessarily reflect the views of AGSI, its staff, or its board of directors.
OPEC+ producers are increasing output in the face of a global economic downtown. This will be a major test for non-OPEC producers, but OPEC+ seems confident that time is on its side.
Global demand forecasts by leading agencies have diverged sharply, reflecting a deepening sense of uncertainty about the future path of the global economy.
Global demand forecasts by leading agencies have diverged sharply, reflecting a deepening sense of uncertainty about the future path of the global economy.
The concern for Gulf oil producers is that tariffs on major Asian powers could impact their manufacturing sectors and economies and dampen demand for oil.
While the Gulf Arab states are making significant strides toward electrifying transportation and reducing emissions, the journey is fraught with challenges.
As 2024 comes to a close, oil markets remain under a cloud of uncertainty shaped by geopolitical risks, weaker-than-expected Chinese demand, and an evolving energy transition landscape.
