Oil & Gas

In response to ongoing changes in the global energy sector, Qatar has made a clear statement regarding its stance on oil and natural gas pricing. During a televised interview that coincided with U.S. President Donald Trump's visit to Doha, Qatar’s Minister of State for Energy Affairs, Eng. Saad bin Sherida Al-Kaabi, emphasized that the country does not support oil prices rising to $100 per barrel.

Al-Kaabi warned that such high prices could negatively impact global demand and highlighted Qatar’s preference for moderate and balanced pricing that encourages investment while maintaining global economic stability.

Al-Kaabi elaborated that excessively low oil prices are just as harmful as extreme highs, as they threaten long-term energy supply and infrastructure investment. He criticized the increasing pressure from the United States on OPEC+ to ramp up production, saying it contributes to price instability, which could deter future investments, particularly in the natural gas sector where pricing is often tied to oil.

He noted that a price range between $70 and $85 per barrel strikes the right balance, enabling energy companies to invest and maintain field development without discouraging demand.

Turning to liquefied natural gas (LNG), Al-Kaabi explained that Qatar’s early decision to expand its LNG production, particularly from the North Field, was initially met with skepticism but has since proven to be forward-thinking.

He argued that while renewable energy is crucial for the future, natural gas will remain a vital energy source for the next century. He dismissed concerns of a market surplus, pointing to delays in several global LNG projects that are likely to result in a supply shortfall by 2030.

Al-Kaabi also addressed the broader global economic recovery following the COVID-19 pandemic, stating that while growth remains fragile due to trade tensions and geopolitical uncertainties, particularly between the U.S. and China, the outlook for natural gas remains strong.

He stressed that if oil prices drop below $70 for an extended period, it could lead to underinvestment in the sector, starting with smaller firms and eventually affecting larger ones. Qatar, he reiterated, is committed to playing a stabilizing role in the global energy market by expanding its LNG capabilities responsibly, thereby ensuring long-term supply without disrupting global demand.