MENA Energy Trends, Global Energy Warming, and COVID-19 Crisis: An Investigation Analysis from Oil, Gas, Regional Economy, and Labor Productivity

Abstract

With the complex presence of important natural reserves, energy is considered as the main key ingredient to facilitate economic development in the Middle East, GCC, and Maghreb regions. Expectations for a rapidly growing economy in the next decade will likely cause an increase in the fraction of energy consumed domestically, limiting what is available for export. Considered as the home of global oil and gas reserves, the Middle East and North Africa (MENA) region is the cornerstone of the global energy architecture, and the global low-carbon energy transition poses critical questions to MENA oil and gas producers. Unfortunately, as the coronavirus (COVID-19) pandemic sweeps across the world, growth in the MENA region was projected to fall to 2.8% in 2020, lower than the growth rates during the 2008 global financial crisis and the 2015 oil price shock. Before the coronavirus (COVID-2019), the sharp drop in oil and gas prices that began in 2015 fostered MENA hydrocarbon producers to launch ambitious economic reform programs in all regions. The main goal of these programs was not only to increase the diversification of investment sectors to boost national and regional economies but also to encourage the development of the nonhydrocarbon sector. This article argues for a new challenge investigation and analysis to figure out with current MENA policy options and future prospects, as well as the present impact of COVID-19, in addition to the public policies that encourage diversification economy sector to avoid entire dependence on oil and gas in export are dressed. It also deals with the investigation of the pressing need to create job opportunities for a large and youthful population and the new definition of the possibility of the world moving more aggressively towards low-carbon integration.