Current Oil Industry in Dubai

In the 19th century, Arabs depended on barterin other sectors. They also know that the oil
and trade of gold and pearls for survival. With thereserves are likely to dry up in the coming 20
discovery of oil and gas in the sixties, the scenarioyears. They are producing 240, 000 barrels a day
changed. Oil and gas are the nerves of UAE sinceand good quality of gas from offshore fields. The
1962 and it is the 4th largest producer in themain offshore fields are Fateh, Southwest Fateh,
world. The country was not under developedFalah and Rashid. The Margham onshore deposit
back then. Today, it is the backbone of thefield is in isolation. The Dubai Petroleum Company
economy. In the year 1962, petroleum was firstis the main facilitator in this part. The UAE has
exported. Petroleum dominates the economichelped to stabilise the oil industry in the region and
power of the city. In the 20th century, the tradethe world. Its rulers have positive and a very
was upgraded to the rich oil resources. Oil tradingbalanced way of handling the price structure. It
became the primary source of trade and revenueparticipated in two major petroleum cuts in 1998
in the Emirate. With the transformation of theand 2000. This was critical to survival of the
trading materials, the city moved on with a fasteconomy and OPEC also. In 1998 they reduced
pace. In 1985, it reached the highest per capitaproduction by 1.7mbd. In 2000 they also were
income in the world with US $19,120. This broughtagreeable to holding the OPEC summit in
all round development in the region. Various jobVenezuela to strengthen world oil supply. They
opportunities also attracted professionals andalso joined the mega-project of Dolphin initiative
unskilled labour from Asian countries. Unlike oilwhere the DSA (Dubai Supply Authority) agreed
production the region did not have muchto buy off Qatari gas. This move consolidates the
infrastructure for agriculture, fishing, sheep rearing,UAE's policies on oil trade in the region. Dubai
herding or poultry. Although Abu Dhabi is thecontributes 2% of gas reserves of UAE. The
richest in terms of oil production, it is Dubai whichstate's Dubai Natural Gas Company produces
is more recognised as the industry leader in othernatural gas in the offshore fields and a gas piped
sectors. At one point smuggling activitiesfrom Sharjah. The rulers are being taken seriously
dominated the port areas of Dubai, all that hasby the world community in other sectors.
now changed. It has become a flourishing businessThe natural oil gas industry is still worth its weight
centre amongst the GCC.in gold, the rulers have become more practical by
The oil industry is still controlled by thediversifying in sectors which are proving to be an
government. They know that it is this produceasset to the economy.
that brings them on the forefront of development