The latest “Statistical Review of World Energy” from BP reasserts the Gulf states dominance as an unrivalled source of petroleum resources. Collectively, they control around 30 per cent of proven oil reserves as of end 2017, in effect representing no change from recent years. The figure also represents nearly 41 per cent of total reserves held by Opec.

The group controls 71 per cent of the world’s proven oil reserves, a fact illustrating its importance as a sustained source of crude for the foreseeable future. Among GCC states, Oman and Bahrain are not part of the grouping. The sultanate likes to maintain independent policies but follows Opec’s production and price strategies.

With a global oil share of 15.7 per cent, Saudi Arabia maintains its place as the second largest source of proven reserves after Venezuela, controlling 17.9 per cent of the world’s total. However, Venezuela lags the kingdom in terms of production and export of oil.

Kuwait and the UAE have reserves estimated at 6 and 5.8 per cent, respectively. Qatar comes fourth with a 1.5 per cent of global share of oil reserves. Oman accounts for about 0.3 per cent.

Turning to production, GCC countries accounted for 23.5 per cent of total output in 2017, but down from 24.4 per cent in 2016. The development is in line with Opec’s decision to cut output as part of a drive to push prices up. The efforts have paid off, bringing in higher revenues for producing countries. GCC countries have a track record of increasing output to meet demand and reducing production to help stabilise prices if needed.

The US had overtaken Saudi Arabia as the largest oil producer in 2017. The top three — the US, Saudi Arabia and Russia — accounted for 14.1, 12.9 and 12.2 per cent, respectively.

It has emerged that American firms have been involved in efforts to produce oil and gas off the coast of Bahrain. Currently, Bahrain is the smallest producer within the GCC but that could change thanks to the government’s determination to explore new sources.

By one account, the new discoveries in Bahrain, uncovered in April, make up to 20 trillion cubic feet of gas offshore and 80 billion barrels of shale oil. Concrete results from the drilling are expected within two years, but the prospects are promising, as the area near the Saudi border is known for containing untapped oil and gas reserves.

Yet, the Gulf countries are not leaders in the consumption of oil. The US leads by accounting for 20 per cent of global consumption and hence its need to import oil from elsewhere.

On a negative point, several Gulf countries depend excessively on the petroleum sector for the well-being of their economies. The petroleum sector in Kuwait contributes about 80 per cent to the treasury revenues and export earnings account for 40 per cent of GDP. The best scenario is that of using oil proceeds to diversify away from the petroleum sector.

Dr Jasim Ali is a Member of Parliament in Bahrain.