The Feasibility of Energy Cooperation between Iran and the Gulf Arab States
- 32 Downloads
The nuclear deal signed on 14 July 2015 should have become a breakthrough in the Iranian–Gulf Arab States energy cooperation. Yet, although the Western companies have been filing up to sign the energy deal to boost the sector and benefit from the cravings of Iranian industry, the region remains quite reluctant to any economic rapprochement. It would have been expected that the Arab Gulf States—as the closest potential partner (in liberal market circumstances)—would have been the first to advise their northern neighbour on technologies and partnerships’ inclinations, yet nothing much has happened so far. The political agenda remains the most important criterion in the region whose leaders’ behaviour is driven by realism impulses. Since the Gulf countries face economic challenges, the respective governments had to revise the expenditures and cut on the subsidies. The shared energy fields are also the subject for closer analysis. However, this has not brought the whole Gulf Cooperation Council, as an organisation, to work on a common long-term solution. These are the six capitals that, within the political framework, are obliged to reconsider the options for economic survival in this new geopolitical situation. Therefore, the aim of this paper is to study whether the opening of Iran—during the first term of Hassan Rouhani’s office—created a favourable environment for the energy cooperation between Arab Gulf States and Iran or the discord between the parties exists beyond the nuclear threat. If that proves to be the case, what are the major impediments that need to be resolved?
KeywordsNuclear energy Oil Natural gas Pipeline GCC
- Alarimi, Fatma. “Oman says to change Iran gas pipeline route to avoid UAE,” Reuters, August 10, 2016. http://www.reuters.com/article/us-oman-iran-gas-idUSKCN10L21N.
- Al-Asaad, Hassan K. and Ahmed A. Ebrahim. “The GCC Power Grid: Benefits & Beyond”. http://www.gccia.com.sa/Data/PressRelease/Press_13.pdf.
- Bagchi, Indrani. “India, Iran and Oman go under sea to build pipelines, change geopolitics.” The Times of India, March 1, 2014. http://timesofindia.indiatimes.com/india/India-Iran-and-Oman-go-under-sea-to-build-pipelines-change-geopolitics/articleshow/31227746.cms.
- Baxter, Elsa. “Bahrain investment in power to reduce blackouts.” Arabian Business, June 27, 2010. http://www.arabianbusiness.com/ahrain-investment-in-power-reduce-blackouts-293044.html.
- Bowman, Dylan and Reuters. “GCC common market comes into effect.” Arabian Business, January 1, 2008. http://www.arabianbusiness.com/gcc-common-market-comes-into-effect-122387.html.
- Carter, Stephen G. “Iran, Natural Gas and Asia’s Energy Needs: A Spoiler For Sanctions?” Middle East Policy, 31, No. 1, spring 2014.Google Scholar
- Dargin, Justin. “Saudi Arabia, UAE promote energy from sun and wind”, Oil & Gas Journal, March 23, 2009; 107, 12; pg. 18.Google Scholar
- Elston, Leigh. “South Korea seeks stronger ties with Oman to counter Strait closure” Interfax Global Energy. March 18, 2016. http://interfaxenergy.com/gasdaily/article/6530/south-korea-seeks-stronger-ties-with-oman-to-counter-strait-closure.
- Esfandiary, Dina, and Ariane M. Tabatabai. “Scent of an Oman.” Foreign Affairs, April 27, 2017. https://www.foreignaffairs.com/articles/ahrain-gulf/2017-01-17/scent-oman.
- El-Katiri, Laura. “Interlinking the Arab Gulf: Opportunities and Challenges of GCC Electricity Market Cooperation.” Oxford Institute for Energy Studies, July 2011. https://www.oxfordenergy.org/wpcms/wp-content/uploads/2011/07/EL_81.pdf.CrossRefGoogle Scholar
- Government of Dubai. “DEWA Gets Tenders for a Techno Economic Study on the Application of Coal based Electricity Generation in Dubai”, press release, January 9, 2011.Google Scholar
- Van Groenendaal Willem J.H. and Mohammad Mazraati, “A critical review of Iran’s buyback contracts,” Energy Policy 34, no. 18 (December 2006).Google Scholar
- International Energy Agency’s “World Energy Outlook 2009” (WEO).Google Scholar
- Havrylyshyn, Oli & Kunzel, Peter. (1997). “Intra-Industry Trade of Arab Countries: An Indicator of Potential Competitiveness”. IMF Working Papers. 97.Google Scholar
- Kakande, Yasin. “Power blackouts hit Khor Fakkan.” The National, June 28, 2011. http://www.thenational.ae/news/uae-news/power-blackouts-hit-khor-fakkan.
- Kombargi, Raed and Otto Waterlander, George Sarraf, Asheesh Sastry. “Gas Shortage in the GCC. How to Bridge the Gap”. http://strategyand.pwc.com/media/uploads/Gas_Shortage_in_the_GCC.pdf.
- Malek, Caline. “UAE’s first nuclear power plant could begin operating by May”. The National, January 22, 2017a. http://www.thenational.ae/uae/20170122/uaes-first-nuclear-power-plant-could-begin-operating-by-may.
- Malek, Caline. “Dh63m project to link power from Barakah nuclear plant to Abu Dhabi power grid”. The National, March 19, 2017b. http://www.thenational.ae/uae/dh63m-project-to-link-power-from-barakah-nuclear-plant-to-abu-dhabi-power-grid.
- Mirza, Adal. “Sanctions Prompt Shell to Scale Back Tehran Office,” Middle East Economic Digest 54, no. 33 (August 13, 2010).Google Scholar
- Nakhoul, Samia, and William Maclean. “Oman joins Saudi-led Islamic alliance: Gulf sources.” Reuters. December 28, 2016. http://www.reuters.com/article/us-saudi-oman-coalition/oman-joins-saudi-led-islamic-alliance-gulf-sources-idUSKBN14H1L4.
- Yergin, Daniel. The Quest: Energy, Security, and the Remaking of the Modern World. US: Baker & Taylor, 2012.Google Scholar
- Neubauer, Sigurd, and Alex Vatanka. “Central Sultanate.” Foreign Affairs, May 5, 2015.Google Scholar
- Panda, Ankit, “India, Iran and Oman Open Talks on Deep Sea Gas Pipeline”. The Diplomat, March 1, 2014.Google Scholar
- Price, Dan. “Oman’s Search For Renewable Energy Sources”. March 22, 2017. http://www.Earthisland.Org/Journal/Index.Php/Oeuvre/Dan-Price/.
- Raghu, M. R. “What the lifting of Iranian sanctions will mean for GCC countries”. The National, October 21, 2015.Google Scholar
- Sanzhiev, Artem. “Gas pipeline to India being considered.” Russia Beyond, December 21, 2015. https://www.rbth.com/economics/cooperation/2015/12/21/gas-pipeline-to-india-being-considered_553397.
- Sen, Indrajit, “Iran in talks with Kuwait, UAE to export gas”. Arabian Industry, November 2, 2015.Google Scholar
- Slav, Irina. “Iran is stepping up production at an oil field it shares with Saudi.” Business Insider, May 7, 2017. http://www.businessinsider.com/iran-stepping-up-production-at-an-oil-field-shared-with-saudi-arabia-2017-5?IR=T.
- Stanton, Chris. “Improved Gulf power grid reduces blackouts”. The National, July 29, 2010. http://www.thenational.ae/business/energy/improved-gulf-power-grid-reduces-blackouts.
- Zaccara, Luciano, and Marta Saldaña. “Cambio Y Estabilidad Política En Las Monarquías Del Golfo Tras La Primavera Árabe / Change and Political Stability in the Gulf Monarchies after the Arab Spring.” Revista CIDOB D’Afers Internacionals, no. 109 (2015): 179–180.Google Scholar