Saudi Arabia’s boast that its southern desert region contains vast reserves of natural gas is facing growing skepticism, amid a string of exploration setbacks by international oil companies operating there.
The kingdom had hoped that gas in the Rub al Khali, a vast desert that translates into English as the Empty Quarter, would be a key source of fuel for its booming economy. If the region turns out to be as empty as its name implies, Saudi Arabia runs the risk of a gas-supply crunch within the next decade at today’s rate of demand.
If that happens, and the kingdom has less gas than expected, it will be forced to divert more of the oil it produces for its own use, leaving less to fuel the rest of the world’s cars, airliners and factories.
Pessimism about the Empty Quarter was fueled by French oil company Total SA’s decision in January to quit a consortium exploring for gas in the region after it drilled its third dry well.
“We don’t see any way forward after [these ] results,” said Christophe de Margerie, Total’s chief executive, in a recent interview.
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Saudi Arabia’s boast that its southern desert region contains vast reserves of natural gas is facing growing skepticism, amid a string of exploration setbacks by international oil companies operating there.
