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
Buffett: ‘No Interest’ in Occidental Takeover, Praises 'Hallelujah!' Shale
2024-02-27 - Berkshire Hathaway’s Warren Buffett added that the U.S. electric power situation is “ominous.”
1Q24 Dividends Declared in the Week of April 29
2024-05-03 - With earnings season in full swing, upstream and midstream companies are declaring quarterly dividends. Here is a selection of dividends announced in the past week.
Why Endeavor Energy's Founder Sold His Company After Years of Rebuffing Offers
2024-02-13 - Autry Stephens', the 85-year-old wildcatter, decision to sell came after he was diagnosed with cancer, according to three people who discussed his health with him.
CEO: Magnolia Hunting Giddings Bolt-ons that ‘Pack a Punch’ in ‘24
2024-02-16 - Magnolia Oil & Gas plans to boost production volumes in the single digits this year, with the majority of the growth coming from the Giddings Field.
E&P Earnings Season Proves Up Stronger Efficiencies, Profits
2024-04-04 - The 2024 outlook for E&Ps largely surprises to the upside with conservative budgets and steady volumes.