By Andy Sambidge
Crescent Petroleum exec says Mideast oil's global role set to grow as a result.
The repercussions of the BP Gulf of Mexico oil spill will be felt within the industry globally for many years to come, a leading GCC oil official said on Sunday.
Badr Jafar, executive director of UAE-based Crescent Petroleum, said the whole industry would be under greater scrutiny as a result.
He said the Arabian Gulf region would play a central in ensuring the global market remains well supplied.
"With the fallout from the oil spill in the US Gulf of Mexico, the Arabian Gulf region’s central role is set to grow," he said.
“The recent tragic events in the Gulf of Mexico have given all participants in the energy industry, producers and consumers alike, cause for thought," he added.
“We at Crescent have no doubt that the repercussions of the spill for the industry are going to be felt for many years to come. One unquestionable outcome is that the whole oil and gas industry will now be under great scrutiny and will be held, justifiably, to the highest possible safety and environmental standards."
He said the deepwater drilling for oil and gas was likely to face not only more regulation but also the threat of reduced or delayed investment.
The International Energy Agency (IEA) estimates that by 2015 the US Gulf of Mexico oil production could be 100,000 to 300,000 barrels of oil per day lower than previous forecasts.
Jafar said the Arab Gulf region’s focus on onshore and shallow water production safeguards it from many of the new problems facing the deepwater industry.
However, he added that more oil industry investment was likely to be needed to ensure adequate production is maintained.
“We believe the Arab Gulf’s private sector will play a key role in contributing to the continued security of the global oil system,” Jafar said.
“That is why we are actively investing in the oil and gas sector within and outside the region. The Gulf of Mexico incident has shocked the industry and the world; we will do our part in ensuring it does not lead to an economic shock as well.”
The BP oil spill will affect everyone around the Gulf of Mexico for years and years. New Orleans could have perhaps more problems consider the towboat, Pere Ana C, hit an oil rig and created another oil spill, reports the Associated Press. The boat hit the Louisiana marshland which happened to have a wellhead inside it. MSNBC reports that Plaquemines Parish President Nungesser explains oil is shooting in the air right about now.