There are opportunities for expansion, investment and growth in the oil and gas industry, as demand for energy continues to rise, particularly from the high-growth economies of Asia, according to His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and Group CEO of the Abu Dhabi National Oil Company (ADNOC).
Speaking in London at the 39th Oil and Money Conference, co-hosted by The New York Times and Energy Intelligence, H.E. Dr. Al Jaber said global demand for oil is reaching record highs and that by the end of this year, much sooner than expected, the world will see the historic milestone of consuming 100 million barrels of oil per day. In addition, the petrochemicals sector will become the single largest driver of oil demand growth by 2050.
“Perhaps the most important takeaway from current energy trends is that oil demand continues to gain strength,” H.E. Dr Al Jaber said. “Global GDP is at its highest point since 2011, all the major economies are expanding, and we are witnessing the highest growth in Asia. This growth is driving energy demand and reinforcing the role oil and gas play as key enablers of global economic progress.
“Never before in history has the map of the word’s energy needs looked so promising and so rewarding. Today’s evolving energy landscape is filled with opportunities for achieving greater success for our companies, our shareholders and our customers.”
H.E. Dr. Al Jaber said ADNOC shares this positive outlook as it continues to optimize efficiencies and remains fiscally prudent, while taking full advantage of growth opportunities.
“The name of the game is minimizing costs, while maximizing value. At ADNOC, this is what we are focused on in every aspect of our business, from drilling platforms to trading platforms,” H.E. Dr Al Jaber said.
“Since 2016, we have reduced our operating expenditure significantly. We are deploying our capital more efficiently, attracting strategic investors and leveraging capital markets, where and when it makes sense. At the same time, we constantly seek innovative, commercial, financially savvy and value-add partnerships to enable our ambitious smart growth plans – partners that bring technology, know-how and market access.
“We are also leveraging the power of digital technology, such as AI, machine learning and neural networks to enable us to make better decisions, faster. And, importantly, to drive efficiency across our entire value chain, from reducing drilling time to maximizing the value of every barrel we produce,” H.E. Dr Al Jaber added.
In his speech, H.E. Dr. Al Jaber highlighted the recent announcement of the strategic partnership between ADNOC Drilling and Baker Hughes GE, which will accelerate the growth and market access of the region’s integrated drilling company, as a perfect example of ADNOC’s expanded approach to partnerships. The combined capabilities of ADNOC and BHGE, he said, will optimize efficiencies, strengthen performance, reduce well completion times and generate strong profits for both parties. It will also provide ADNOC with a solid platform to explore expansion into regional markets and allow it to capture more value at home.
As one of the world’s largest exporters of oil and gas, H.E. Dr Al Jaber said ADNOC remains committed to satisfying the increasing demand for hydrocarbon-based energy and will continue to be a trusted and reliable supplier of crude to the world’s energy markets for decades to come.
In preparation for this, he explained, the Abu Dhabi government has taken the historic decision to open up six new onshore and offshore oil and gas exploration blocks, in a competitive bid process that closes this month. These blocks, spanning 30,000 kilometers, have attracted an overwhelming response from 39 bidding parties from all over the world.
In addition, he said, ADNOC will continue to tap the substantial, unexploited, potential it has in gas, by accessing gas caps, exploring undeveloped tight reservoirs, moving into unconventionals and significantly expanding its sour gas production, as part of its strategic objective to develop its gas resources sustainably and economically.
At the same time, H.E. Dr Al Jaber said ADNOC is significantly boosting its Downstream capabilities, investing US $45 billion, along-side partners, to capitalize on state of the art facilities in Ruwais, to the west of Abu Dhabi city, to create a plug and play manufacturing cluster and industrial hub. When fully operational, the complex will be the world’s largest integrated refining and petrochemicals complex and will act as a catalyst for GDP growth, skilled jobs and economic diversification within the UAE.
