Bahrain’s first oil discovery in 1932 was so huge that BP, the international oil company, did not want to participate in Kuwait’s oil concession with the Gulf oil company.
Bahrain was among the top Arabian Gulf oil producers along with Iran and Iraq prior to any oil discoveries in Saudi Arabia and the rest of the Arabian Gulf oil producers.
Last week witnessed announcements of new oil discoveries in Bahrain with 80 billion barrels of oil reserve in place and between 10 and 20 trillion cubic square feet of gas. Both oil and gas are of shale type that will take some time to produce. It is estimated to take five years to come on stream, but the discovery is of shallow water and environment-friendly compared to shale oil of the USA.
The estimated oil reserve of 80 billion barrels will make Bahrain one among the top oil reserves within the league of Kuwait and Abu Dhabi, and slightly ahead of Russia which is the largest oil producer.
This discovery will boast Bahrain’s economy and can enhance its position in the region to make oil its first source of income along with tourism.
Certainly, it is a great opportunity for this country, which had managed without oil and was dependent on foreign aids.
Now their economic ratings will improve gradually. Overall, this is great news for this small country especially since it was the first within the Arabian Gulf region where oil was discovered.
Recovery for typical shale oil is between 10 to 15 percent; however, with the recent advanced technology in USA, it could exceed this rate. It is more environmentally-friendly, and less harsh and severe compared to deep water drilling or in the arctic region.
Bahrain is going to embark on a new era of prosperity and improved economy. This discovery will place her on par with other rich oil-producing countries.
By K. A. Al-Harami – Independent Oil Analyst
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