The CEO of the Abu Dhabi National Oil Co. (ADNOC) said that the long-term outlook for global energy demand was “robust” and that investment of $11 trillion in oil and gas was needed to keep up with projected demand.
United Arab Emirates minister of state and ADNOC Group CEO Sultan Ahmed Al Jaber also said that the state oil company was on track to raise its oil production capacity to 4 million barrels per day (MMbbl/d) by 2020 and 5 MMbbl/d by 2030.
The UAE, the third-largest oil producer in OPEC, behind Saudi Arabia and Iraq, pumps about 3 MMbbl/d.
“In the short term ... global economic uncertainties are creating market volatility and impacting energy demand. But in the long term, the outlook is robust,” Jaber said during an energy conference in Abu Dhabi on Sept. 9.
He said population growth and rise of the middle class was expected to lead to greater spending power and that, as a result, more than three times the amount of energy currently consumed by Europe would be added to demand in the next two decades.
“To meet this demand ... we will need an inclusive response that integrates and optimizes a fully diversified energy mix,” he said, adding that the world would still rely on oil and gas as the majority source of energy for decades to come, which would require investment of $11 trillion to keep up with demand.
The CEO said ADNOC is unlocking “vast reserves” of natural gas by tapping into gas caps, undeveloped reservoirs and unconventional resources.
He said ADNOC launched the region’s first commercial scale carbon capture utilization and storage facility in 2016 and plans to expand the program by six times over the next decade.
Recommended Reading
As ONEOK Digests Magellan, Sets Stage for More NGL Growth in 2024
2024-02-28 - ONEOK is continuing the integration of its newly acquired Magellan assets in 2024 as the company keeps an eye out for M&A opportunities and awaits regulatory approvals for certain projects.
Dallas Fed Energy Survey: Permian Basin Breakeven Costs Moving Up
2024-03-28 - Breakeven costs in America’s hottest oil play continue to rise, but crude producers are still making money, according to the first-quarter Dallas Fed Energy Survey. The situation is more dire for natural gas producers.
Enterprise Buys Assets from Occidental’s Western Midstream
2024-02-22 - Enterprise bought Western’s 20% interest in Whitethorn and Western’s 25% interest in two NGL fractionators located in Mont Belvieu, Texas.
EIA: E&P Dealmaking Activity Soars to $234 Billion in ‘23
2024-03-19 - Oil and gas E&Ps spent a collective $234 billion on corporate M&A and asset acquisitions in 2023, the most in more than a decade, the U.S. Energy Information Administration reported.
Continental Resources Makes $1B in M&A Moves—But Where?
2024-02-26 - Continental Resources added acreage in Oklahoma’s Anadarko Basin, but precisely where else it bought and sold is a little more complicated.