Healthy Global Economy Pushing Up Energy Demand, Says ADNOC CEO
Att.Editors: The following item is from the Emirates News Agency (WAM)
ABU DHABI,Jan 13
(WAM) - Forecast growth in the global economy, especially in non-OECD countries, will push up energy demand to levels that no single source of energy can meet, according to Dr. Sultan bin Ahmad Sultan Al Jaber, United Arab Emirates (UAE) Minister of State, CEO of Abu Dhabi National Oil Company (ADNOC).
Speaking Friday at the second Atlantic Council Global Energy Forum, in Abu Dhabi, Dr. Al Jaber said the global energy industry’s fundamental mission remains to ensure security of supply in a world in which market dynamics are shifting and energy consumption is set to expand by 25 per cent by 2040.
"This economic growth will continue to drive energy consumption, which will expand by at least 25 per cent by 2040 – to a level no single source can meet. So, as we diversify the energy mix, hydrocarbons will continue to play a vital role in meeting demand. In fact, by the end of this year, global demand for oil alone is set to break the threshold of 100 million barrels per day," Dr. Al Jaber said
In response to the changes in the energy market, Dr. Al Jaber said, ADNOC is creating new strategies, rethinking its business models and enhancing its performance. By pivoting towards new, smart growth, unlocking and maximizing value and optimizing its capital structure, the company is redefining the rule book for how ADNOC operates.
ADNOC’s 2030 strategy, he said, aims to capitalise on predicted global economic growth and demand for oil and petrochemical products, particularly in non-OECD countries. As its business responds to changing market dynamics, the company will continue to broaden its partnership base, strengthen its profitability, adapt to new realities and expand market access.
A major part of ADNOC’s growth strategy is the creation of the largest, integrated, refining and chemicals site in the world, in the UAE, to enable it to increase crude refining capacity by 60 per cent and more than triple its petrochemical production. When the expansion project is completed, ADNOC will convert 20 per cent of its crude to chemicals, diversifying its range of higher value products to provide a natural hedge to oil price movements. ADNOC has also announced plans to expand gas production, to meet the UAE’s growing domestic needs, by accessing undeveloped tight reservoirs, tap into its gas caps and expand sour gas production.
The two-day Atlantic Council Global Energy Forum was held in partnership with the Ministry of Energy, Abu Dhabi National Oil Company, Mubadala, IPIC and Masdar. It has brought together over 350 leading energy voices from the region and around the world.
The forum was established in 2017, as part of Abu Dhabi Sustainability Week, preceding key events including the International Renewable Energy Agency’s Annual Assembly and the World Future Energy Summit. It will help set the 2018 energy agenda, strengthen understanding of energy markets, encourage breakthrough technologies and foster sustainable development. (WAM)