Investments Between Qatar and South Korean Governments in Oil & Gas Essay

Investments Between Qatar and South Korean Governments in Oil & Gas Industry and Others - Essay Example The 1970s’ oil and economic boom did play a very central role in promoting the economic growth of the Gulf Cooperation Council (GCC) countries. The enormous revenues so derived from the exportation of oil and natural gas saw these countries make immense investments in both infrastructure and development. Such investment necessitated a labor force that surpassed the countries’ local supply (Commercial Bank of Qatar 1). Although this deficiency in labor force can be attributed to the small indigenous populace in these countries, the situation was worsened by the fact that a majority of the citizens hardly qualified for the required tasks. This saw through overseas experts being called upon to remedy the situation. Moreover, with the subsequent expansion in the industry, Qatar and South Korea have become destinations for expats in search of employment. This has a result seen the two countries enter into joint infrastructural and development ventures (COP18/CMP8 1). Literature Review Qatar is a small peninsular country located in the Persian Gulf. This notwithstanding, the country has in the past emerged as a partner of not only the United States- and more especially in hosting major military facilities of the United States- but also with other countries the likes of South Korea. Statistics have indicated that Qatar is the third largest holder of natural gas reserves in the world, with an estimated reserve capacity of 896 trillion cubic feet. Besides, its small citizenry has seen the nationals enjoy the global highest per capita income. Shaykh Hamad bin Khalifa Al Thani, the Emir of Qatar has been able to manage a course of the principal economic growth (Expo 2012 1). After replacing his father, limited political liberalization has taken place under the leadership of The Emir. It is however worth noting that Shaykh has seen through several projects capitalizing on the country’s hydrocarbon resources with such benefits as improvements in the educational opp ortunities for the Qatar nationals and economic diversification being realized (SWF 1). In 1999, the state-owned oil company, Qatar Petroleum, increased its crude oil production to 824 000 barrels per day from 593000 barrels per day. By 2012, crude oil production by the company is at 730000 barrels per day. Nevertheless and owing to the fact that there are likelihoods of oil reserves becoming exhausted in the event that the current production rate remain unchanged, Qatar has rapidly moved to the exploitation of the vast natural gas reserve so as to meet the demands of its importers who include South Korea, Singapore and Japan (Williams 1). And as part and parcel of the country’s long-term development strategy, Qatar has tapped international financial markets and entered into investment with countries like South Korea. The country has also invited foreign investment in the recent past in an effort to finance the expansion of its gas extraction and liquefied natural gas product ion facilities. Apart from partnering with the South Korean government in the oil and gas industry, Qatar through Qatar Holding LLC did sign a memorandum of understanding with the Korean ministry of land,