The UAE Energy Minister, Suhail Al Mazrouei, said that the fundamentals do not indicate that oil prices will reach $100 next year, as there will be an oversupply.
The minister added, during statements on the sidelines of the activities of the ADIPEC 2021 exhibition and conference, which started today in Abu Dhabi and will continue until November 18, that we are expected to witness a surplus in oil supplies in the first quarter of 2022.
Al Mazrouei pointed out that Next year will witness achieving balance in the oil marketSome production is expected to come from US shale oil.
He stressed that the basic factors will determine the path of increasing OPEC + production during the coming period.
Al Mazrouei added, in statements broadcast by the official Emirates News Agency, that the commitment of OPEC + to increase oil production by 400,000 barrels per day every month, contributes to market stability and the balance of supply and demand.
He called for the rationalization of energy consumption by a third, to avoid the depletion of its sources, and added that it was necessary to maintain a balance between supply and demand in the oil and gas markets.
The UAE Minister of Energy said that the UAE is continuing its investments in the sector in order to meet the growing demand for oil and gas and ensure the stability of global markets.
He explained that the production capacity of the refineries in the UAE is 1.2 million barrels per day.
In a related context, the CEO of Mubadala Petroleum, Mansour Mohamed Al Hamed, expected that the demand for oil in 2024 would be 7% higher than its level in 2019.
For his part, Chief Executive Officer of Abu Dhabi National Oil Company (ADNOC) Sultan Al Jaber said that the world cannot “simply detach” from hydrocarbons, and that the oil and gas industry needs to invest more than $600 billion annually until 2030 to meet projected demand.
During his speech at ADIPEC, Al-Jaber said that the COP26 climate conference was successful, reiterating a call for a practical approach to combating climate change while at the same time ensuring energy security at the global level.
He added that in order to achieve a successful transition to a new energy system, a sudden separation from the existing energy system cannot simply be made.
At the Glasgow summit, the oil-producing Organization of the Petroleum Exporting Countries defended the role of fossil fuels in the future, arguing that the world could reduce greenhouse gas emissions without excluding oil and gas.
Al-Jaber, who is also the Minister of Advanced Technology in the UAE, which will host the COP28 conference in 2023, said that ADNOC intends to increase its production capacity to 5 million barrels per day by 2030, while working to reduce carbon intensity.
He added that ADNOC is working to increase carbon collection and storage capacities from 800,000 tons annually to 5 million tons, and that it will use nuclear and solar energy in its electricity grid as of next January.
He said that this would significantly reduce emissions from the company’s activity, and would achieve more than a third of the target to achieve in reducing carbon intensity by 2023, adding that this would also contribute to achieving the UAE’s goal of reaching net zero emissions by 2050.
He stated that the UAE will make the COP28 conference a catalyst for reaching practical and commercial solutions for sustainable energy.
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