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.
EOG Resources plans to test about six oil and gas prospects this year with a focus on adding premium drilling locations while still lowering well costs.
Occidental Petroleum has been aggressively cutting costs by laying off staff and selling assets to pay down its $38.54 billion debt pile following its acquisition of Anadarko Petroleum.
The Houston-based company’s total production rose 11% to 78.2 million barrels of oil equivalent per day for the quarter ended Dec. 31.