GCC’s oil: Setting the record straight

08/06/2017 01:48 AST

THE historic economic reforms and transformation in GCC countries currently underway could be interpreted erroneously and lead to unintended messages, including the idea that our countries are moving towards a major oil renunciation. We are fully aware that oil will remain central to our economies in the Gulf, in our lives as individuals and in the lives of people throughout the world. In the same vein, diligence to maintaining our position in the global oil market will not prevent us from developing renewable energy sources. Accordingly, our media must deal with four aspects of the petroleum industry with the professionalism they deserve.

The first is the negative image of oil producing countries, including the GCC, and the claim that we exert pressure on consumers in the oil market. Some even claim that GCC countries and their cooperation through OPEC blackmail consumers to achieve financial gains for our countries. They ignore the huge concessions and heavy burdens borne by the GCC countries to maintain the stability of the oil market and the balance between producers and consumers’ interests. The most recent example is illustrated by the sacrifices made by these countries in the past few months in cooperation with non-OPEC countries to restore stability to the oil market. Over the years, it has been proven that significant volatility in the markets hurts all interests.

The second key point is the inaccurate and scientifically unsubstantiated content; the first about oil reaching its peak and then about expectations to attain peak demand. Studies have proven that such statements are false and have been launched to promote other sources of energy and some countries’ economic interests.

Moreover, independent scientific studies affirmed that the world’s oil reserves, which were proven to be scientifically viable and economically feasible, are sufficient for decades to come despite the increasing demand. This is especially the case if the reserves are handled in a conscious manner and benefit from the application of modern and innovative technologies.

Thirdly, there are some who are trying to make the petroleum industry totally responsible for environmental pollution and climate change. They ignore major consumer countries that do not pay any real attention to the environment and overlook the continuous efforts of the GCC countries to contribute to protecting the environment and fulfilling their obligations to relevant international agreements. The Paris Agreement was signed by all the Gulf countries. In Saudi Arabia, for example, we recently launched the Initiative of Custodian of Two Holy Mosques for Renewable Energy to generate 10 gigawatts of renewable energy within seven years.

The fourth and final issue relates to the size of revenues and the financial value generated by the oil consuming countries. Contrary to the misleading claims of media reports that producing countries are the only winners in the oil industry, we find that 40%-80% of the value of a liter of fuel in many developed consuming countries is allocated as taxes received by local governments.

The aforementioned issues and many others confirm that GCC countries need a petroleum media to educate the public at home and abroad about the various areas of industry and the fundamental role it plays in the global economy and in everyday life. The question here is: what are the secrets of success to building and activating a successful petroleum media and attracting and developing excellent oil journalists? I believe that it consists of the following four pillars.

The first and most important pillar is represented by the combination of all stakeholders’ efforts to create effective and integrated partnerships that adopt the development of excellent and promising petroleum journalists.

Secondly, discovering talented resources who show a real passion to work in the petroleum media fi

Saudi Gazette