STANDPOINT by Atique Naqvi

Most GCC currencies are pegged to the US dollar Global oil demand is declining; energy efficiency is rising; carbon tax is on the horizon, technology has boosted oil production; the world is entering the age of oil abundance, as a result, the oil-rich Arabian Gulf region is facing the depletion of financial wealth in 15 years. Let’s connect the dots with the help of the International Monetary Fund’s (IMF) research paper titled, “The Future of Oil and Fiscal Sustainability in the GCC Region”, released on February 6, 2020. Six oil-rich countries - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates – that are a member of the Gulf Cooperation Council (GCC) are also responsible for the one-fifth (20%) of the global oil production. The global oil market is undergoing a huge fundamental change as new technologies are increasing the supply of oil from old and new sources while raising concerns over the environment are seeing the world gradually moving away from oil, s...

If there was a crystal ball, it would definitely be found in the offices of futures traders. In the absence of a crystal ball, traders rely on news, reports, strategy and a fair amount of good luck to make money. ** By Atique Naqvi, aka Syed Atique Hussain, Boston, United States Energy futures fluctuations help investors make or lose money. It's a game played in big volumes. From political events to evolving business equations and, of course, demand and supply mechanisms decide the energy futures market in 2018. While the oil prices are witnessing an upswing in early 2018 from the sluggish price levels in 2015, 2016 and 2017, the global energy commodities’ futures market looks positive for now. Before looking into the impact on energy futures in 2018, there is a need to clarify some basic concepts. Futures are standardized contracts for the future delivery of specified assets, according to Tim Plaehn, a US-based financial expert who writes advisory notes for several f...

As Natural Gas is a cleaner fossil fuel than crude oil, analysts say its demand will grow faster than other hydrocarbon energy mix. ** By Atique Naqvi, aka Syed Atique Hussain, Boston, United States CO2 emissions from natural gas are around 40% lower than coal. As oil prices touched $70 a barrel at the beginning of the third week in January 2018, the general oil and gas industry sentiment looks positive for this year. Charif Souki, who is considered as the energy guru in the United States, told CNBC the same week that the natural gas industry would require more than US$150 billion of infrastructure investment over the next five years. Souki, co-founder, and chairman of LNG firm Tellurian says investments in the natural gas infrastructure are proving to be a bigger hurdle for the sector’s growth than many people think. Also, North American natural gas businesses are anticipating “The Great Return of The Alaskan Ridging” owing to the US President Donald J Trump’s decision...

Despite a slowdown, growth in Africa is set to return in 2018 and 2019, according to the World Bank. ** By Atique Naqvi, aka Syed Atique Hussain, Boston, United States The GDP growth in Africa is expected to strengthen to 2.4 percent in 2017. As the population increases in Africa’s 54 countries coupled with strong economic growth, the energy demand is set to rise as well for the next few decades. Major oil and gas producers in Africa such as Nigeria and Angola, and smaller producers such as South Sudan, Niger, Ghana, Uganda, and Kenya will witness the big shift in terms of energy exports. One of the biggest future trends in the oil and gas sector is expected to affect exports of African energy. British Petroleum in its latest research says that Africa is experiencing the fastest demand growth owing to urbanization, rising population, improved infrastructure and strong economic growth. At the same time, one of the biggest domestic challenges is the per capita energy consum...

Concerns over the safety of nuclear power plants have marred the investments in the sector, but with new technology, the landscape is set to change in the next few years. ** By Atique Naqvi aka Syed Atique Hussain, Boston, United States Total energy investment worldwide was around $1.7 trillion. The positive outlook for the global economy is fueling investments in several sectors of the economy including energy. The public and private sector investments, international trade and favorable employment figures are boosting the overall spending in the global markets. The investments in capital-intensive projects and usage-intensive sectors such as energy are on the upswing, and nuclear energy is not different. The International Monetary Fund in its World Economic Outlook Report released in October 2017 says the global growth forecast for 2017 and 2018 is 3.7 percent and 
 3.8 percent, respectively. “Notable pickups in investment, trade, and...