Petroleum in Qatar

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Petroleum in Qatar

Petroleum in Qatar

Because it is considered as a great and developed emirate in the Gulf region and the Middle East, Qatar is regarded as a part in the Arabian Peninsula. In addition, it has borders with the Persian Gulf and Saudi Arabia. Furthermore, a lot of Persians lived in it many years ago. Its space is about more than eleven thousands square kilometers. It also shapes a country that is just almost one hundred and sixty kilometers far from the Persian Gulf. As for its climate, the summer is the prevalent season most of the year starting from June and ending in September. The temperature there is very high that could surpass fifty five degrees in summer. The weather is also dry but in winter the temperature decreases and the climate becomes cool and enjoyable.


History of Qatar:

In fact, Qatar became independent from the British government in 1971 after the declaration of its emir. From this time, it established and founded its position in the area of the Middle East refusing any kind of integration with the United Emirates or Saudi Arabia as it preferred to be independent and has autonomy. As for the economy in Qatar, it is used to rely on fishing and extracting pearls from oceans and seas many years ago. After petroleum supplies and natural gas were discovered in the forties, the economy inside the state was completely transformed and this resulted in the increase of the level of living for its people.

On the other side, most of the citizens who are staying in Qatar are expatriates. The majority of Qatari people are Muslims and the official language in which the majority speaks is Arabic. Other different ethnic groups of people reside in the state. Actually, Doha which is the capital city of the state of Qatar is regarded as one of the most essential, modern, innovative and amazing cities in the whole world. Other important landmarks inside the state involve Al Ruwais, Al Khor and Masaieed as well (Embassy of Qatar , 2014).


Petroleum in Qatar:

Petroleum is considered as the pillar of the economy inside the state of Qatar and form almost seventy percent of the whole income of the state, more than eighty five percent of the profits from outside the country and about sixty percent of the huge domestic product. These petroleum supplies and reserves that are about fifteen billion barrels could guarantee for the country a profit that would last for more than twenty years. Petroleum in fact has contributed in increasing per capita GDP in the state which is regarded as the highest point in the whole world.

As for natural gas, the reserves inside Qatar include more than seven thousand cubic meters which means more than five percent of the total percentage of the natural gas reserves of the world and the third hugest in the world. As for producing and exporting petroleum, it has become very important and essential. The targets and objectives that last on the long term form the improvement and progress of petroleum of offshore besides the diversity and differences of the economic field. Qatar is now regarded as the wealthiest country in the entire world. Its ongoing GDP ranked a breaking world record growth of about one point one percent in the seventies. This turned out to be unsustainable and the ongoing GDP per capita decreased to fifty three percent in the eighties. In the nineties, the increasing request and need to petroleum in the whole world aided the ongoing GDP to extend and increment to more than ninety four percent. Diversity is still regarded as a long term problem for this well-known economy (US Energy Information Adminstration, 2014).

On the other side, before the appearance of industries based on petroleum and petroleum, Qatar was a poor country that its economy depended on pearl fishing. In 1939, the usage of petroleum and natural gas reserves began to be exploited. After 1973, the income, production and exports of petroleum started to increase quickly transferring Qatar from the rank of one of the poorest countries into one of the highest per capita revenues in the entire world. In fact, the economy of the state of Qatar was going down between eighty two and eight nine. This was because of the quotas of OPEC on the production of crude petroleum as well as the low prices of petroleum and the unpromising expectations inside global markets. As for the Qatari government, it did all its best efforts in order to face the low revenue. The atmosphere of the local business forced a lot of countries to make its workforce redundant. After the recovery of economy in the nineties, the number of expatriates from Egypt and Asia increased again.

The production of petroleum as a matter of fact will not stay for a long time to be at the top ranks with almost five hundred thousand barrel each day as petroleum reserves are expected to vanish and become dry in 2023. Nonetheless, the reserves and supplies of natural gas have been situated away from the northeast shore of the state of Qatar. The Qatari natural gas reserves are considered as the third hugest reserves of natural gas in the entire world surpassing more than seven thousand cubic meters. In 1991, the economy was supplied and enhanced by finishing the first stage of improving and developing the North Field gas which cost more than one billion American Dollars. In 1996, the project of Qatar gas started to export LNG to the country of Japan. More stages of improving and developing North Field gas which cost a lot of money are in different stages of making strategies and designing plans as well as improvement (Yahoo, 2014).

As for the most important ventures in Qatar which are all based in Umm Said, involve a refinery with more than fifty thousand barrels for the capacity each day, a plant of steel and petrochemical as well as a plant of fertilizer for ammonia and urea. All these industries in fact utilize gas for producing and using fuel. The majorities of these projects are mutual between companies from Japan and Europe in addition to the ones owned by the QGPC. On the other side, the United States of America is regarded as the most important and the basic supplier of equipment and tools for the industry of petroleum and gas in Qatar. In addition, the American firms and incorporations have a great part in the improving of the North Field gas. Furthermore, Qatar continues a great program and strategy of Qataralization on which all the mutual projects and industries as well as governmental segments are looking forward to move the nationals of Qatar into status of more authority and power. The increase in the amount of numbers of educated Qatari persons involving a lot of educated students in the United States are going home to take the role of status and careers previously occupied by expatriates. Therefore, in order to be able to dominate the rush of expatriate staff, Qatar has strained the programs and regulations of its foreign workforce in the administration over the previous years. That’s why safety is the main pillar of the Qatari harsh entry and laws for immigration.


History of Petroleum in Qatar:

In 1939, petroleum was discovered in great amounts in the state of Qatar and the first export of its products was in 1949. The revenues and supplies of petroleum have granted Qatar huge revenue and a high level of living for its people. In addition, the discovery of drilling in order to reach petroleum in Qatar started in 1938 and petroleum was explored on the west shore in 1939 in Dukhan. In 1940, Qatar was making production of more than four thousand barrels each day. Although the World War II stopped the improvement and the revenue of producing petroleum which was pursued between 42 and 47, the exports started in 1949. The petroleum field of Dukhan spreads and expands from Dukhan to the west shore and involves three petroleum supplies lied between field of natural gas and formations of limestone. In 1952, the Qatari Shell Company received a permit in order to discover and explore lands on the continental shore. The majority of the offshore explorations focused on the island of Halul which was situated at the east of Doha about ninety kilometers away. The main fields on the shore which were explored are Maydan Mahzam in 1963 and Idd ash-sharqi in 1960 (Civilengineersforum.com, 2014).

Furthermore, the production of offshore supplies started in 1964. In addition, another field was explored in 1991 through the company of Elf Aquitaine Qatar. The amount of reserves onshore and offshore in 1990 was more than four billion barrels granting almost 32 years of production at the levels of the beginning of nineties. Therefore, in order to leave an impact on the industry of petroleum with taking in consideration the income, cost, expenditures and production as well, Qatar joined OPEC in 1961 after its foundation. In fact, Qatar remained near the production quota of OPEC when it was in the interest of its economy and income but has always surpassed its quota in order to be able to compensate for markets or to exploit the increase in prices which came from the invasion of Iraq in Kuwait in 1990.

On the other hand, between 1960 and 1970, the production of petroleum each year has incremented the double from more than one thousand barrels per day to more than three thousand barrels per day. In 1973, the production of petroleum increased to reach more than five hundred thousand barrels per day. Although there was a small amount of increase in producing petroleum in 1984, there was a stable decrease in the beginning of the eighties which reached four hundred thousand barrels per day. The levels and standards of production incremented in the eighties and nineties and about four hundred thousand barrels per day were produced in the nineties too.

On the other side, the QNPC was founded in 1972 in order to deal with the processes and operations of petroleum. In 1973, the Qatari government was responsible for about twenty five percent of SCQ and QPC. After two years, QGPC was founded and the government made new deals and contracts with the companies of petroleum as well as granting QGPC an ownership of about sixty percent. In 1977, all the processes and operations onshore and offshore were officially nationalized. As for QPC, its refinery began working with a capacity of six hundred barrels per day. What’s more, in 1975 this capacity has increased to produce more than six thousand barrels per day and to ten thousands in the eighties. The overall capacity became more than sixty thousand barrels per day because of inaugurating a new refinery in the state. In the nineties, the company of national petroleum distribution refined about sixty two barrels per day.


Advantages of Petroleum:

In the middle of the thirties, after years from unrevealed disputes and conflicts between the companies of petroleum from the United States, Britain and Saudi Arabia, a concession onshore was given and offered to the Anglo-Persian Petroleum Company which moved the concession to PD in Qatar that is considered as a subsidiary of IPC. On the other hand, Petroleum companies from Britain, America and France had shares in the Iraq Petroleum Company. Later in 1953, Petroleum Development in Qatar was called Qatar Petroleum Company. Because of the sufficiency of crude petroleum at this time, the drilling in order to explore petroleum didn’t start till the beginning of 38. After one year in 1939, petroleum was discovered on the west coast in Dukhan. In 1940, the production of almost four thousand barrels each day started. Due to the Second World War and its results, the production of petroleum went back from the peak and stopped between 42 and 47 besides the operations and processes of exports didn’t start till 1949. As a matter of fact, the petroleum field in Dukhan expanded from the south along the west coast in addition to owning about three petroleum reserves.

On the other hand, there are many advantages for petroleum. These benefits are:

First: petroleum is considered as an easy source of energy that could be transferred quickly by any means of transportation and could be put in barrels.

Second: it is regarded as a perfect source of organic molecules and atoms in order to construct and establish industry of plastics, rubber and fiber.

Third: it has the ability to bear high temperatures without being destroyed or damaged which makes it useful for the usage of lubricants like grease and petroleum of motors.

Fourth: its residues form an amazing surface for the asphalt of ways besides being waterproofed for equipment of roofing and other things.

Fifth: it contains special materials and substances which form perfect solvents for the usage in industry as well as paint.

Sixth: it comprises other substances and materials like propane and butane which form as a spectacular source for fuel of cooking that could be carried and transferred easily and quickly as well as being used in heating in places that aren’t prepared enough for the delivery of natural gas.

Seventh: as for natural gas, it is used to manufacture fertilizers that are used in agriculture and detergents used in houses and other places.

Eighth: if we compared between petroleum and other sources of fuel, we will find that petroleum is considered as the first and only economical source to produce fuel as it really cheap and doesn’t cost a lot of money unlike other sources that need huge equipment and industry.

Ninth: producing petroleum and being used as a source of energy has less effect on the environment and the planet earth than coal.

Tenth: without the exploration of petroleum, all whales would die and vanish from the surface of the earth because they were regarded as the source of lamp petroleum for lighting before the discovery of petroleum and they are still recovering from being hunted in the eighties.

Eleventh: petroleum has been used in many industries and led to the emergence of new products and good as well as contributing in increasing and developing the technology used in many fields which of course resulted in improving our life.

Twelfth: during the Second World War, the production of petroleum in Texas was regarded as the most important source for supply of fuel for the allied forces and without this benefit over both Japan and Germany the world could seem really different nowadays. At this time, the United States of America was considered as the biggest petroleum supplier in the entire world.

Thirteenth: the refineries of petroleum produce the international supply of sulfur as a product used for a lot of applications and usages in the industry. As for natural gas, it is considered as the supply of helium gas for the whole world.


Benefits of Petroleum for Qatar:

As a matter of fact, the petroleum is found in nature in the form of accumulations inside rocks with some veins called rock huts. From these rocks and stones are sands, dolomite and limestone as well as other rocks. Normally inside huts, rocks of petroleum are discovered and explored in relation with natural gas. The origins of petroleum are not certainly formed and founded. In fact, there are two concepts or we can call them theories: organic petroleum and inorganic petroleum. The theory about the formation and establishment of petroleum discusses that petroleum is formed from marine organisms that after their death they were transformed into residues that are covered later. As for this theory, the period of formation of petroleum covers a period of almost between three hundred and fifty to forty billion years. On the other side, there are a lot of advantages for the usage of petroleum.

First: the technologies used in order to get petroleum out of the ground are very sophisticated and improved as well as having the ability to use deposits and residues in various geological cases especially in the depths of seas and oceans in certain climatic conditions.

Second: petroleum contains large amounts of density of energy: about one kilogram of burnt petroleum gives about ten thousands kilo calories.

Third: because of its formation as a liquid, it could be transported and stored easily and quickly without causing lot of money and expenses as well as being easy to deal with it.

Fourth: it could be used in many applications, processes, operations and fields starting from the chemical and transport usage reaching to being used as a source of energy in power plants.

Fifth: it is used as a fuel of gasoline or diesel in order to power and function the motors from all the types: cars, motorcycles, trains and buses in order to meet the demands and needs of people who want to move and transport quickly from one place into another one.


Conclusion:

To sum up, petroleum is a very essential source of energy. It is used in many various fields in the industry as well as applications and processes. Besides, it is considered as the main source of income and revenue for Qatar and the whole Gulf region. Therefore, countries and governments must be aware of its usage and control its production as these reserves of petroleum could vanish and get dry quickly. Furthermore, they must use it in an economic way so that they could not end these supplies rapidly and not cause pollution to the environment by using it in large amounts because petroleum could be very dangerous to the environment and living organisms. Although petroleum causes a lot of pollution and has bad effects on the environment, it is better than coal as coal could have severe and serious effects on the planet earth. Besides, the whole world can’t do without petroleum because it is used in many industrial fields and it is the source of income for many countries.


Bibliography:

U.S. Library of Congress. (2014). The Economy - Petroleum and Natural Gas. Retrieved November 20, 2014, from http://countrystudies.us/persian-gulf-states/73.htm
Civilengineersforum.com. (2014). Petroleum | Advantages and Disadvantages of Petroleum. Retrieved November 20, 2014, from civil engineers forum: http://civilengineersforum.com/petroleum-advantages-disadvantages/
Embassy of Qatar . (2014). Petroleum and Gas. Retrieved November 20, 2014, from http://www.qatarembassy.it/eng/ie/petroleum_and_gas.html
Middleeastarab.com. (2014). History of Qatar: The Discovery of Petroleum. Retrieved November 20, 2014, from http://middleeastarab.com/qa/history-qatar-discovery-petroleum.html
Stenden University Qatar. (2014). State of Qatar. Retrieved November 20, 2014, from http://www.stenden.com/en/locations/qatar/aboutstateofqatar/Pages/default.aspx
US Energy Information Adminstration. (2014, January 04). Qatar. Retrieved November 20, 2014, from http://www.google.com.eg/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&ved=0CDQQFjAC&url=http%3A%2F%2Fwww.eia.gov%2Fcountry%2Fcab.cfm%3Ffips%3DQA&ei=zpZsVJz1IcjAOYCIgagC&usg=AFQjCNFC77l0UyNoNS8xkWJGkHdL7gVwTw&sig2=mArFm4iukZWiM8lqDNkkjQ&bvm=bv.80120444,d.ZWU
Yahoo. (2014). What are the advantages and disadvantages of petroleum? Retrieved November 20, 2014, from : https://answers.yahoo.com/question/index?qid=1006020305594


Petroleum in Qatar
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