Introduction

It has been called, “the Energy Revolution”, and shale gas has bas been dubbed, the “Game Changer”, leading the revolution in the energy world.

Observers of energy markets around the world have been enthusiastically looking at the latest developments in unconventional energy resources. Meanwhile, the GCC region, which has been controlling a large part of the conventional resources, does not seem to have a clear strategy for adopting new strategies to meet the challenges of the new developments.

For the western world in particular, energy security has been a major concern for over 40 years. In fact it can be viewed as one of the main drivers behind the dynamics of world energy markets, which have been trying to minimize their dependence on some suppliers like the GCC nations to guarantee a continuous flow of their vital energy supplies, without an additional political or economic price-tag.

With a huge reserve of conventional oil and gas, a relatively low development cost, and a considerable production capacity, the GCC region has gained a certain geopolitical power within a dynamic and unstable equilibrium of powers where the nations of this region have gained control over its resources, while major importers still have the know-how, and the technologies needed to develop those resources.

The development of alternative sources of fossil energy in various places of the world could not go unnoticed by the Arab Gulf region, which will have to deal eventually with many related challenges. The purpose of this paper is to address those challenges from a GCC perspective, hoping to give a strategic input that will help decision makers to guarantee a more secure future for the coming generations.

Significance

Energy supplies are equally important to both importers and exporters. They create a structure in which both parties become seriously interdependent, both politically and economically.

Energy supplies are equally important to both importers and exporters. They create a structure in which both parties become seriously interdependent, both politically and economically.