The Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC and its Group of Companies, Dr. Sultan bin Ahmed Al-Jaber, confirmed that low-carbon oil will play a major role in the transformation of the energy sector.
This came during his participation in a virtual dialogue session within the activities of the “Sierra” Energy Week, on the trends of the oil and gas sector and the transformation in the energy sector, in which the CEO of Oxy, Vicky Holube, participated.
Al-Jaber said, during the dialogue, that “the UAE has important advantages that enable it to produce low-carbon oil and gas, and we have two important advantages in this field, the first is our wise leadership that puts environmental protection among its priorities, and the second is a natural advantage that made the extraction of oil and gas resources we have the least. Globally in terms of carbon emissions ».
He added that the UAE began preparing for the transformation of the energy sector 15 years ago, as the country views the transformation in the energy sector as an opportunity to diversify and develop the economy.
Al-Jaber added: “During my work at Masdar, I participated in developing investments in renewable energy sources in the UAE, and today the country has three of the largest and least expensive solar energy projects in the world, in addition to large renewable energy projects in 30 countries around the world. ».
Al-Jaber pointed out that “the world will remain dependent on oil and gas for many decades to come, and therefore our mission at (ADNOC) is to work on responsible production of oil and gas.”
He stated that ADNOC is working to implement its growth plans, with a commitment to reduce carbon emissions by an additional 25% over the next 10 years, adding that the company is exploring opportunities and potentials in new fuels, such as hydrogen, which has shown great and promising potential as an emission-free fuel. Carbon can be produced on a large scale, as part of ADNOC’s current hydrocarbon value chain. Al Jaber said: “ADNOC continues to work on commercial opportunities that would enhance the UAE’s leading position in the energy sector, through a diversified and integrated mix of energy sources.”
In response to the question of the moderator, the economist, who won the Blitzer Prize, and Vice President of IHS Markit, Dr. Daniel Juergen, on climate change, Al Jaber stressed that the UAE continues its pioneering role in the region to enhance global climate action efforts, and to push for this The trend as the first country in the region to sign the Paris Agreement on Climate Change ».
Al-Jaber reviewed his view on the economic outlook, expressing optimism, and clarifying the double positive impact of the vaccination program against the “Covid-19” virus, and the economic stimulus programs implemented by governments around the world.
“Vaccines represent one of the factors of economic recovery, while the other factor is the return of the wheel of economic activity to rotation,” he said, explaining that as part of the efforts to respond to this pandemic, governments around the world continue to provide unprecedented packages of incentives, while more of them are expected, but the important thing is To remain alert to the risks of economic inflation.
Commenting on the economic recovery, Al-Jaber said, “At the global level, China is now at the forefront of economic recovery efforts in the world, based on GDP data, which indicate strong growth rates. We also expect the US economy to return to achieving growth in Gross domestic product (GDP) is at levels similar to what they were before the outbreak of the pandemic, by the end of this year, and that this growth will continue in 2022.
He added that these developments mean a strong recovery in demand for oil, compared to the lowest levels of demand during the pandemic, in which the world was consuming 75 million barrels per day, indicating that “given the current average oil consumption, which is 95 million barrels per day, it is expected that the demand will increase. Global oil reserves have reached a higher level than it was before (Covid-19) at the end of this year ».
ADNOC allows its customers to freely trade in crude oil
The Abu Dhabi National Oil Company (ADNOC) announced yesterday that its customers will be allowed to freely trade in all crude oil produced by it, which include “Murban”, “Alawi Zakum”, “Das” and “Umm Lulu”, in the global markets, starting from the first month. To trade futures contracts for the new “Murban Crude”.
This step contributes to increasing profitability and economic return, and creating additional value for ADNOC and its customers, by increasing demand and raising the value of all types of oil produced by the company, as well as providing greater flexibility for ADNOC customers in managing their purchases of crude oil, and enabling them to manage Better market volatility risk.
The CEO of ADNOC’s Refining, Manufacturing and Marketing Department, Khaled Salmeen, said, “(ADNOC) is working to ensure that the necessary conditions are in place for trading Murban crude freely, and that its success is a reliable price indicator in global markets.”
– “Global demand for oil is expected to rise to higher levels than before (Covid-19) at the end of 2021.”
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