Friday , August 23 2019
Home / Bruegel Think Thank / The impact of the global energy transition on MENA oil and gas producers

The impact of the global energy transition on MENA oil and gas producers

Summary:
Endowed with half of the world's known oil and gas reserves, the Middle East and North Africa (MENA) region is cornerstone of the global energy architecture. This article argues that – together with the pressing need to create jobs opportunities for a large and youthful population – the possibility of the world moving more aggressively towards a low-carbon future should represent a key argument for the implementation of economic reform programmes.Endowed with half of the world’s known oil and gas reserves, the Middle East and North Africa (MENA) region is cornerstone of the global energy architecture. The global low-carbon energy transition poses critical questions to MENA oil and gas producers, as it may imply sustained pressure on their development models, which rely heavily on

Topics:
Simone Tagliapietra considers the following as important: , , , , , , ,

This could be interesting, too:

S. T. writes The Democrats need to have a climate-only TV debate. For Americans and for the rest of us

Jean Pisani-Ferry writes The Coming Clash Between Climate and Trade

A. G.-H. and J. X. writes China’s investment in Africa: What the data really says, and the implications for Europe

Guntram B. Wolff writes The EU needs a bold climate strategy

Endowed with half of the world's known oil and gas reserves, the Middle East and North Africa (MENA) region is cornerstone of the global energy architecture. This article argues that – together with the pressing need to create jobs opportunities for a large and youthful population – the possibility of the world moving more aggressively towards a low-carbon future should represent a key argument for the implementation of economic reform programmes.

Endowed with half of the world’s known oil and gas reserves, the Middle East and North Africa (MENA) region is cornerstone of the global energy architecture. The global low-carbon energy transition poses critical questions to MENA oil and gas producers, as it may imply sustained pressure on their development models, which rely heavily on hydrocarbon revenues. Without economic reforms, this may translate into macroeconomic unbalances, and ultimately put at risk established social contracts in the region. The sharp drop in oil prices that began in 2014 fostered MENA hydrocarbon producers to launch ambitious economic reform programmes aimed at increasing the diversification of their economies, notably by developing their non-hydrocarbon sectors. This article argues that – together with the pressing need to create jobs opportunities for a large and youthful population – the possibility of the world moving more aggressively towards a low-carbon future should represent a key argument for the implementation of these economic reform programmes. That is, MENA producers might use the potential prospect of lower global hydrocarbon demand and prices to overcome their rentier state model, and pursue the economic diversification plans never duly implemented in the past.

About S. T.
Simone Tagliapietra

Biography data hidden due GDPR Data Protection. Author consent pending.
(Economic Blogs is not responsible for linked external content)

Leave a Reply

Your email address will not be published. Required fields are marked *