Abstract
Stumbles in the United States' implementation of its post-war Iraq restoration policy have invited the present crude oil prices stabilized at a higher level. Year 2003' s income from petroleum in the Middle East oil-producing nations is forecast to reach a 20-year-ago level of the so-called "Oil Boom." Oil majors having numerous oil and natural gas reserves around the world are gaining a huge income, thereby holding abundant funds to invest. A look at the investment trend of the world, as a whole, tells that the total amount invested remains constant, in which investment fields and regions are determined by economic trends, consumption tendencies and regional stableness. From this standpoint, any large, concentrated investment in areas other than the energy field does not seem likely anytime soon because of economic slowdowns worldwide. During at least 3 to 4 years from now, the circumstances are that investment will tend to be concentrated on profitable projects in resources-rich Middle East countries, such as crude oil exploration, natural gas development and LNG.
The most serious issue in the Middle East nations is how to handle a bursting young-generation population. In most of the Middle East, the population at age 250r under is more than 60%, which has invoked the fear that those countries' national finances depending on oil and LNG income may bust in the not-distant future. Large-scale industrialization policies are being launched in an attempt to revitalize the economy and to ensure employment for younger labor. There will be a continuation of a huge investment in plans to build up petrochemical complexes based on inexpensive energy resources. Along with this, a large investment is expected in infrastructure construction, such as water, electricity, and town gas, for areas being rapidly urbanized.
