OIL, GAS TO DOMINATE GLOBAL ENERGY SUPPLY FOR THE NEXT 25 YEARS

DUBAI, Dec 20 (Bernama) -- Oil and gas will continue to constitute the
majority of the world's energy supply over the next 25 years, according to
Deloitte's 2011 Oil & Gas Reality Check report.

It said deepwater drilling was continuing despite significant progress in
developing renewable and other alternative energy sources, as well as the
staggering US$35 billion liability that the Deepwater Horizon spill caused.

These were among the findings of the report issued by Deloitte's Global
Energy & Resources group.

The document also highlighted the irony facing many Gulf states.

"While they sit on top of some of the world's most abundant natural gas
reserves, they're struggling to find enough of this clean-burning resource to
meet their growing electricity demand," it said.

Deloitte noted that together, the member nations of the Gulf Cooperation
Council (GCC) -- Bahrain, Saudi Arabia, Kuwait, the United Arab Emirates, Qatar
and Oman -- held about 23 per cent of the global gas reserves.

"However, with the exception of Qatar, the GCC states are facing increasing
gas shortages," the study said, attributing the situation to the booming GDP
growth.

Deloitte said GCC economies were growing at a rate of about seven per cent
a year, which was spurring demand for both gas and electricity.

"Another factor is the strain of subsidies. Many Gulf states sell natural
gas as well as electricity at highly-subsidised rates," it added.

This is the second year that Deloitte's Global Energy & Resources group
has produced the report using in-depth interviews with clients, energy industry
analysts, and Deloitte member firms' most senior energy practitioners.

--BERNAMA