BP: Middle East Faces Oil Challenges From Shale And Within

The Middle East remains the world's largest oil exporting region and also becomes the largest consumer of oil and other fuel liquids per capita, surpassing North America, by 2035 consuming over three times the amount per person than the global average, BP said.

Low, often subsidised prices for gasoline and electricity give Middle East residents little incentive to switch to fuel-efficient cars from gas-guzzlers, or cut their use of air conditioning in one of the world's hottest climates.

At the same time, countries' efforts to develop their economies beyond oil are leading them into energy-intensive industries such as aluminium smelting.

World Demand

World oil demand will rise to 109 million barrels per day (bpd) by 2035, up 19 million bpd and led by China, India and the Middle East. Even so, oil will be the slowest-growing fuel over the period.

BP expects Russia and South America to contribute about 1 million bpd of shale oil each by 2035 and that oil from tight rock formations will account for 7 percent of global supplies in 2035, Ruhl told reporters.

Still, the entry of other producers will not prevent a slowdown in the rate of supply growth.

"What we have is very rapid growth right now, and decelerating over time," Ruhl said.