A cartel for gas, how useful is that?
The Reuters Middle East Investment Summit team asks Majid Jafar, executive director of UAE’s Crescent Petroleum and board member of Dana Gas, what he thinks of the idea of an OPEC-style gas cartel? He says that it would definitely benefit the whole industry as OPEC does to its members.
But he warns the cost of transporting gas would be one of the challenges as opposed to oil, which is traded with ease as many tankers wander the waters of the world.
The cartel will help member states have a constant dialogue t arrive at a shared learning and coordination of action, Jafar says.
Last night, Russia, Iran and Qatar, which control 60 percent of the world’s gas reserves, said they were forming an OPEC-style gas cartel. Western concerns mounted after this move, that is seen as a step that could drive up prices.
Natural gas, the cleanest of the fossil fuels, now makes up about 20 percent the energy used in the United States, the world’s top consumer.