Raise your hand who hasn’t yet renewed the annual contract with his reverse and happily switched to long pajamas. Don’t compare me – I’m deep in fluff even in August, but take a moment to imagine what’s happening in Europe, where it’s not only much colder and grayer, but the issue of energy available for heating has become a deep existential fear of governments and citizens. Winter is already here, and so is the Russia-Ukraine war, and while we pretty much rely on our home heating, there it is a real and big concern. One of the solutions that appear on the horizon is a transition to liquid gas consumption. And here comes into the picture a tiny Emirate that won the lottery a long time ago, but now is about to do it again – Qatar. An in-depth review of the Yelin-Lapidot investment house reveals how Europe’s fortune is about to become the new source of income for one of the richest countries in the world. I read the whole thing to understand what’s actually going on here, and so that you don’t get left behind – I gave you the main points. And for the benefit of those whose energy reserves are in good condition – I promise to attach the full review at the end.
1. It’s a story that starts with oil, but really doesn’t end there. Until 1940, Qatar was one of the poorest countries in the world and was mainly based on trading pearls. Then a huge oil reservoir was discovered there that changed the picture: the Dukhan reservoir. Within nine years, Qatar began exporting oil, and its economic status began to climb.
2. Actually, oil is the small story here. In 1971, a huge gas deposit was discovered in the country, and from here, the road to wealth was already short. The fact that it is so small, and consumes so little energy itself, has made Qatar an unusually successful and profitable exporter. The wealth brought to it by this export brought tax exemptions to its citizens, and its GDP – which by the way is not at its peak at the moment – is one of the highest in the world and stands at about 50 thousand dollars per person. 90% of the country’s residents, by the way, are foreign workers.
3. Qatar’s strength is in its resource mix, which is fundamentally different from other OPEC countries. In fact, in 2019, Qatar withdrew from the OPEC alliance while being quite secure in its position. Most of its resources consist of natural gas reserves, and today it is a leading exporter of LNG – natural gas whose share in the new global energy game is growing, following the great crisis in Europe, and in general.
4. How much are we actually talking about here? Let’s compare for a moment to ours. The rate of natural gas production in Qatar is eight times greater than the rate of gas production from the Israeli Leviathan and Tamar reservoirs, and the reserves that Qatar holds are 28 times greater than the Israeli ones.
5. And now we will see what happens when a large exporter meets the number one importer. Qatar has had its foot on the liquid gas pedal since the 1990s, but its main customers today are Asian countries – Japan, China, South Korea and Taiwan. Europe – the No. 1 importer of LNG has so far doubted relations with it, but it seems that the new situation is leading to a thawing of relations and the amount of orders from Qatar has increased by leaps and bounds (as well as from the USA – which also exports LNG in large quantities).
6. You should also pay attention to the pollution section – which is in the process of improvement. Qatar, one of the biggest polluters in the world, has begun to emphasize reducing pollution in its production process. And it’s also a good way to earn points.
How will all this affect the global energy crisis, and Qatar’s high economic status? Very intriguing and worth following. We will be here to do it. And in the meantime, you are invited to read the full and fascinating review of Hadar Wiener-Shurtz from Yelin Lapidot, right here: