Can MENA extractive industries support the global energy transition? Current opportunities and future directions

Abstract

Endowed with half of the world's known oil and gas reserves, as well as a significant deposit of mineral resources, the Middle East and North Africa (MENA) region has perennially accounted for a significant portion of global extractives resource production and supply, catalysing significant economic activity in several low to middle income MENA societies. However, the last decade has seen a growing transition away from carbon intensive fossil fuels across the world. Several studies have focused on how the global energy transition could pose significant threats to sustained economic prosperity and development in MENA extractive industries and society. In contrast, this article examines how extractive industries in the MENA region can play crucial roles in the global energy transition. By leveraging their comparative advantages in environmentally preferable products, such as natural gas; investing in cleaner production methods; promoting investments in low carbon energy infrastructure projects; and ensuring greater institutional coordination in the implementation of low carbon and renewable energy policies, MENA countries can play significant roles in advancing global energy transition and security.