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Region becoming big oil consumer

Report claims that energy-saving measures can benefit UAE

| | Mar 12, 2012 | 9:52 am
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Report claims that energy-saving measures can benefit UAE

Driven by increased population and escalating commercial and residential demand for electricity, especially in the summer months, Gulf States have become significant consumers of oil. Confirming this, global management consulting firm, Oliver Wyman, in its report, titled Delivering on the energy efficiency promise of the Middle East, notes that natural gas supplies no longer meet local demand, and oil exporting countries have started to tap into money-generating fuel oil reserves, impacting both local economic growth and global energy security.

Against this scenario, a recent research by Oliver Wyman has reportedly found that, to address the issue, even modest steps towards greater energy efficiency by MENA countries would result in meaningful savings.

The report concludes that the upside of energy efficiency for a country like the UAE, which wishes to enhance its competitiveness, is big. Oliver Wyman claims that annual energy costs could be reduced by US$3 billion by 2030, assuming constant electricity production costs, with the majority of these savings (~51%) coming in the residential sector, followed by the commercial (~38%) and industrial sectors (~11%).

“The time is ripe for MENA countries to take a closer look at energy efficiency technologies and programmes,” noted Marc Hormann, Oliver Wyman partner and co-author of the study. “Even moderate adoption of proven energy efficiency measures could reduce energy demand by a one-quarter to one-half in the year 2030, greatly freeing up capital.”

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