Columbia International Affairs Online: Policy Briefs

CIAO DATE: 03/2011

Addressing the UAE Natural Gas Crisis: Strategies for a Rational Energy Policy

Justin Dargin

August 2010

Belfer Center for Science and International Affairs, Harvard University

Abstract

Although it seems inconceivable, the United Arab Emirates (UAE) is facing an enormous energy shortage. Much of the world views the UAE – and the rest of the Gulf countries by extension – as an inexhaustible reserve of hydrocarbons. However, as with many of the other Gulf countries, the UAE confronts a potentially far reaching energy crisis. Despite increased energy production and imported Qatari gas through the Dolphin natural gas pipeline, UAE domestic gas demand substantially exceeds available supply. This disparity created a shortfall met by an increasing use of fuel oil, natural gas liquids, and in certain circumstances, coal. But it is natural gas that continues to be the UAE’s most important domestic energy source.