Bahrain’s Q1 crude oil and natural gas production slides 44pc to BD429 million

Manama

The Kingdom’s production value of crude oil and natural gas slid to BD429 million during first quarter of this year according to Central Information Organization, reported Dubai-based publication AMEinfo. This is a steep decline of about 44 per cent from the same period a year ago.

According to Al-Wasat News, the production was at BD777m during Q1 in 2014 and about BD863m in the same quarter in 2013.

Contribution of the oil and gas sector to Bahrain's gross domestic product (GDP) fell to 14.54pc, after a slump in global oil prices sending it to less than $60 a barrel, said the report.

The fall in production value is expected to negatively impact the general budget of the Government of the Kingdom, which is 80pc based on oil revenues, the report read.

Oil prices sliding would lead to lower revenues. This would reflect in the deficit leading to higher public debt, which now stands at more than BD6 billion – almost 48pc of the Kingdom’s GDP, according to the report. However, Bahrain has been looking out to other sources of income, given the tourism-friendly nature of the Kingdom.

Under the Patronage of Minister of Industry and Commerce Zayed bin Rashid Al Zayani, a travel and tourism exhibition was organised this May. An official at the exhibition noted, “The travel and tourism sector in Bahrain has enormous potential to grow in the future with 348 businesses in the tourism industry.”

The Kingdom’s administration seems to have foreseen the global trend in oil and gas sector, thereby boosting support to the lucrative tourism sector.

According to BP’s Statistical Review of World Energy released earlier this month, the US overtook Saudi Arabia as the world’s largest oil producer in 2014. The US also recorded the largest production growth in natural gas at 6.1pc.

This hints at a general trend of reduction in production value for the Middle East countries, which are touted as the traditional leaders in the sector. The global shift has been attributed to the shale fields in the US