Petro Diplomacy: Back to the Future – Oil and Gas at the Center of New Growth in the GCC
On October 18, 2018, the Arab Gulf States Institute in Washington convened its fourth annual Petro Diplomacy conference, “Back to the Future – Oil and Gas at the Center of New Growth in the GCC States.”
Oil rigs
Executive Summary
On October 18, 2018, the Arab Gulf States Institute in Washington convened its fourth annual Petro Diplomacy conference, “Back to the Future – Oil and Gas at the Center of New Growth in the GCC States.” Bringing together thought leaders from the oil industry, finance, government, and academia, participants assessed the latest trends and challenges at the crossroads of energy and politics.
After years of surviving in a low oil-price environment, energy exporters in the Middle East finally entered a period of supply-demand balance. And yet, the geopolitical landscape in the region remains complex and unpredictable, with forces capable of destabilizing markets at every turn. At the top of the list is the return of economic sanctions on Iran and its oil exports, which has the potential to cause significant strain on global oil supply.
Speakers and discussants tackled this theme and others, including how Gulf Arab states are focusing on diversifying their economies through the development of downstream and petrochemical sectors, the impact of technology on unlocking new sources of oil and gas in the region, the emerging relationship between OPEC and Russia, and how the security and political environment affect energy production and pricing.
Trump’s visit to the UAE, centered on artificial intelligence, investment, and defense, will not only highlight the scale of Emirati aspirations but also reveal the complex interplay of state, business, and family networks now shaping the U.S.-UAE relationship.
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.
Saudi Arabia has continued to make progress in diversifying its economy, although lower oil revenue, higher imports, and stronger remittance outflows pushed the current account into a small deficit in 2024.
