Science

Project
Done By:
M. Rafeh
Ayub
Class: 7B6

NATURAL RESOURCES OF U.A.E

Oil in Dubai: history of discovery and impact on the
economy of the UAE

Today it is difficult to imagine that on the place of, shopping malls and
skyscrapers in Dubai was once dry desert with a small settlement.
Currently, the city is considered to be a symbol of progress and victory of
humanity over nature and other circumstances. Despite dry climate and
other adverse conditions, Dubai is significantly ahead in terms of
economic development of mega cities of other powerful countries. No
other country is matching the UAE in terms of luxury. The locals even
have an interesting saying on this subject: We wanted the best, but it
turned out even better than we wanted!.

History of oil discovery in Dubai

The history of Dubai can be divided into two periods: before and after
discovery of oil reserves. Before oil was discovered in Dubai, the place
was mostly inhabited by Bedouins, who were engaged in cultivation of
dates, breeding camels and goats. And proximity to the sea has made

Dubai the center of trade with European countries. City life has changed
dramatically when oil fields Fateh were discovered in 1966, 60 nautical
miles from the coastline. They were quickly developed, and in 1969 the
first batch of black gold - 180 thousand barrels was exported.
1970s and 1980s of the last century were marked for Dubai by
discovering other marine deposits of oil, in particular Rashed and Falah
and onshore field Margam. Peak of black gold production in the
Emirate was in 1991, when the total volume of crude oil amounted to
around 410 thousand barrels per day. Currently 68 million barrels of
precious liquid is annually produced in Dubai.
How did discovery of oil influence the economy of the UAE?

Discovery of oil on the territory of the Emirates prompted rapid growth of

the UAE economy. Especially country began to develop rapidly after
sharp rise in prices for black gold in 1973. Throughout 25 years the
UAE has become a country with one of the highest living standards.
Today, every fifth citizen of the United Arab Emirates is a millionaire.
Government grants to the newlyweds 100 000 dollars for wedding and
for each birth women are paid 20 and in addition land is allocated.
Due to profits from oil exports transport network has greatly improved in
Dubai. Today the UAE may be proud of perfectly smooth roads, modern
international airports and seaports. Development of oil industry in the
country has also attracted foreign labor force - the proportion of
foreigners in the country is more than two thirds of the total population.
Huge investments are made in the construction sector and tourism Dubai is famous for, restaurants, shopping centers. Also investment
activity in the UAE is aimed at development of agriculture and various
factories and enterprises, including power, which provides fresh water
not only for the people, but also green spaces, gardens and agricultural
fields.
Understanding that oil reserves in Dubai may soon be exhausted, today
the government of the UAE has an active policy of economic
diversification in the direction of zones, tourism, finances and re exports. And Dubai has achieved impressive results in it - a lot of
companies from around the world opened in the UAE their subsidiaries,
branches and representative offices and work successfully in this
country.

Oil in Dubai: History and Timeline

1966: Oil is first discovered in Dubai at the offshore Fateh field

1969: Dubai starts to export of oil. The first export shipment of oil
produced from the field Fateh was around 180 thousand barrels

1972: Oil drilling exploration wells begin operations in the field at

Falah. Producation begins June 1978

1973: A new oil field is discovered at Rashid and production

begins in March 1979

1982: Another oil field was discovered at Margham, production

started in 1984.

1999: Dubai government owned Emirates National Oil Company

(ENOC) opens the first oil refinery of the company and follows a fully
owned subsidiary. The refinery, which costs around Dh1.5 billion and
produces 120 thousand barrels per day.

2000: Dubai joins the Dolphin project, signing a memorandum of

understanding to provide the Dubai Supply Authority with Qatari gas
through the project (Dolphin)

2007: Dubai Petroleum assumes control of all oil and gas related
projects in Dubai, following negotiations with international oil companies.
Overview
Dubai has approximately 4 billion barrels of oil in reserve and holds the
second place in terms of oil reserves in the UAE. Dubai Petroleum Co
(DPC) is the main operator in the emirate. Dubais oil production peaked
in 1991 at 410,000 b/d and has been steadily declining ever since.
Dubais oil reserves have reduced over the past decade and are now
expected to be exhausted within 20 years. The main fields are offshore:
Fateh, Southwest Fateh and two smaller fields, Falah and Rashid. The
only onshore deposit is the Margham field. Dubai Petroleum Company
(DPC) is the main operator.
The production of condensate from the onshore Margham field is
running at around 25,000 b/d. Margham, previously operated by Arco
International Oil and Gas Company, is now run by the Dubai Margham
Establishment, which is wholly owned by the Government of Dubai.
The government of Dubai owns the National Oil Company (ENOC), and
this company handles the oil operations in Dubai, The Emirates
Petroleum Products (EPCO) is associated with the ENOC, which

distributes petroleum products to more than 125 distribution stations in

Dubai and Northern Emirates.

THE END