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.
IHS Markit said natural gas prices would drop next year despite robust domestic demand, which has increased by 14 billion cubic feet per day since 2017, and rising exports.
Limited natural gas pipeline takeaway capacity from the region has kept prices very low, or even negative, in recent months, a report from the EIA says.
The Freeport LNG project in the U.S. has shipped its first commissioning cargo on a tanker bound for the UAE.