Arab Oil and Gas Sector: $406 Billion Investment Since 2003, Decline in Reserves Predicted by 2030

Arab countries have attracted 610 oil and gas projects with $406 billion in investments between 2003 and May 2024. The U.S. leads in project count; Russia in investment costs. Oil and gas reserves are expected to decline by 2030, while production will rise.

The oil and gas sector in Arab countries has garnered substantial international interest, attracting 610 projects involving 356 foreign and Arab companies. These ventures brought in investments totaling $406 billion between January 2003 and May 2024, according to the Arab Investment and Export Credit Guarantee Corporation (Dhaman).

In its inaugural sectoral report on oil and gas in Arab countries for 2024, launched from its Kuwait City headquarters, Dhaman highlighted the United States as the foremost investor based on the number of projects, with 85, representing 14% of the total. In contrast, Russia led in terms of investment costs, contributing $61.5 billion, or 15.2% of the total.

However, the report also revealed a troubling forecast. Proven oil reserves in the Arab region are expected to drop to 704 billion barrels by 2024, constituting 41.3% of the global total. A continuous decline of 7% is projected to reduce reserves further to 654.5 billion barrels by 2030. Similarly, natural gas reserves are predicted to decrease from 58 trillion cubic metres to 53.53 trillion cubic metres by 2030. Conversely, production of crude oil, compressed gas, and other liquids is expected to increase by 6.4% to 28.7 million barrels per day in 2024, reaching around 33 million barrels per day by 2030.