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Andrew Follett: Gulf oil reserves are largest and production costs are lowest

Andrew Follett: Gulf oil reserves are largest and production costs are lowest
Gulf oil reserves and export routes

The Gulf region possesses the largest oil reserves alongside the lowest production costs, according to Andrew Follett. He notes that while Kuwait, Bahrain, and Qatar currently rely on the Strait for exports, the UAE, Iraq, and Saudi Arabia have developed alternative routes to bypass it.

Follett links recent global oil price spikes to market fears, noting that prices jumped even though production declines were not significant. This dynamic, he suggests, underscores the significance of the Gulf’s unique position within global oil markets.

Follett has previously examined other energy market disruptions. He reported that Ukrainian strikes on Russian gas facilities may force Moscow to halt gasoline exports. In a separate report, he found that energy companies cut green investment to $25.7 billion in 2024. These developments reflect ongoing shifts in fuel supply and capital allocation.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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