In 2006, EIA estimates that Qatar produced 1.1 million barrels per day (bbl/d) of total oil liquids, of which 815,000 bbl/d was crude oil. In 2006, Qatar’s crude production and oil reserves were the lowest among OPEC member countries. In 2006, Qatar also produced an estimated 250,000 bbl/d of natural gas liquids (NGLs) and 35,000 bbl/d of condensate, each of which are exempt from the country’s OPEC crude oil production quota. During 2006, Qatar consumed an estimated 99,000 bbl/d of oil, with most of the country’s oil production going to exports.

According to Oil & Gas Journal (OGJ), Qatar’s proven oil reserves stood at 15.2 billion barrels as of January 2007. The onshore Dukhan field, located along the west coast of the peninsula, is the country’s largest producing oil field. Qatar also has six offshore fields: Bul Hanine, Maydan Mahzam, Id al-Shargi North Dome, al-Shaheen, al-Rayyan, and al-Khalij. Despite the country's significant oil production and reserves, oil accounts for less than 15 percent of domestic energy consumption.

State-owned Qatar Petroleum (QP) controls all aspects of Qatar’s oil sector, including exploration, production, refining, transport, and storage. QP accounts for about half of the country’s total crude oil output, and holds the rights to all petroleum resources in Qatari territories. However, QP often enlists foreign company involvement through production sharing contracts (PSCs), in which QP typically takes a majority equity share. The company has occasionally relaxed this requirement to attract greater foreign investment. QP also controls Qatar’s downstream oil sector, operating the country’s entire oil pipeline network and sole refinery through its wholly-owned subsidiary, National Oil Distribution Company (NODCO).

The chairman of Qatar Petroleum, Abdullah Bin Hamad Al-Attiyah, is also the head of the Ministry of Energy and Industry and, as of April 2007, the Deputy Prime Minister of Qatar. QP’s operations are therefore directly linked with state planning agencies, regulatory authorities, and policymaking bodies.

QP has focused on enhanced oil recovery (EOR) projects to extend the life of its oil fields, particularly at the onshore Dukhan field, Qatar’s largest oil field. QP expects to modestly boost production capacity at Dukhan from 335,000 bbl/d in 2006 to 350,000 bbl/d in 2008. QP is carrying out similar work at several of its smaller fields, including the offshore Bul Hanine and Maydam Mahzam.

Most new exploration and production (E&P) work is being carried out by international oil companies in offshore areas through Production Sharing Contracts (PSC), including ExxonMobil, Chevron, and Total. While there is substantial E&P work underway, there have not been any major oil discoveries in Qatar during the last decade. Almost all of anticipated new oil production capacity will come from Maersk Oil & Gas of Denmark, which operates the offshore Al Shaheen field. Maersk reached a field development plan agreement with QP in 2005, under which the company intends to more than double the production capacity at Al Shaheen from 240,000 bbl/d in 2006 to 525,000 bbl/d by late 2009. When completed, Qatar would have more than 1.1 million bbl/d in crude oil production capacity compared to an estimated 850,000 bbl/d in EIA’s May 2007 Short-Term Energy Outlook.

As Qatar further develops the country’s large natural gas reserves, production of condensate and natural gas liquids (NGLs) will also increase. As these liquids do not fall under Qatar’s OPEC quota obligations, this may be an important source of future oil production increases. EIA estimates that condensate and NGL production in 2006 together averaged 285,000 bbl/d. Some industry sources expect that this figure could rise to 800,000 bbl/d by 2012.

QP operates Qatar’s oil pipeline network, which is primarily focused on delivering supplies from oil fields to the country’s lone refinery and export terminals. QP operates an expansive offshore pipeline network that brings crude oil from offshore oil fields to Halul Island, where oil can be processed for export. Onshore, most oil is sent to Umm Said for refining or export.

Qatar has three primary export terminals: Umm Said, Halul Island, and Ras Laffan. Ras Laffan is the newest of the three ports and is mainly used to export liquefied natural gas (see the Natural Gas Section for more information). Industry sources report that Qatar typically exports around 600,000 bbl/d of crude oil and about 20,000 bbl/d of refined petroleum products. Most of Qatar’s oil exports are sent to Asian economies, with Japan as the single largest receiver (about 380,000 bbl/d of crude in 2006, according to IEA statistics).

According to OGJ, Qatar has 200,000 bbl/d of refining capacity at QP’s Umm Said plant. QP is also building another refinery, which will have the capacity to run 146,000 bbl/d of condensate. This facility is expected to begin commercial operations in mid-2008. QP is considering a possible third refinery with a capacity of 200,000 bbl/d, although no final decisions have been made on such a project.