Natural gas production is increasing in Arab countries, where some states, such as Qatar and Algeria, turned to be global providers of gas supplies, and gas production has increased significantly in both the UAE and Saudi Arabia, due to the world’s growing independence on natural gas as a source of clean energy. Despite all this, gas prices have fallen considerably during the past five years, where the prices of futures contracts fell from $11.5 (Dh42.20) in June 2008 to $3.3 at present, a whopping decline of 71 per cent.
This steep decline raised many questions about the fate of the huge investments pumped into the gas industry and the volume of its expected revenues, especially since the largest portion of these investments were approved during the time of high prices before the global financial crisis — when sources of funding were easily available.
To see the prospects for the natural gas industry, it is necessary to know the potential reasons behind this decline, while oil prices have increased considerably to be stable at above $100 per barrel over the past two years.
Potential challenges for natural gas | GulfNews.com
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