UAE roots for investments in hydrocarbons for smooth energy transition

UAE roots for investments in hydrocarbons for smooth energy transition

/ News & Interviews / Tuesday, 29 March 2022 12:37

The importance of bigger investment in oil and gas resources to protect the global economy from the impact of geopolitical issues was highlighted by UAE ministers. They also cautioned that lack of capital scarcity in developing energy sources could trigger systemic supply crunch, eroding economic growth globally.

Suhail bin Mohammed Al Mazrouei, minister of energy and infrastructure and Dr. Sultan bin Ahmed Al Jaber, minister of industry and advanced technology, UAE's special envoy for climate change and managing director and group CEO of the Abu Dhabi National Oil Company (ADNOC), made a powerful case for the need for greater investment in oil and gas to protect against global energy disruption.

Dr. Al Jaber stressed on the sensitivity of energy markets towards geopolitical shocks that are currently taking place. He noted that the current volatility in oil prices as the result of a deeper underlying structural issue and said that long-term underinvestment in oil and gas has left markets more exposed to risks of any kind regardless of its origin of occurrence.

Highlighting UAE’s investments in low carbon and no-carbon energy sources, Dr Al Jaber said that UAE is expanding production capacity of the world’s least carbon-intensive oil to over 5 million barrels per day while also growing renewables portfolio fivefold and growing natural gas capacity by 30%.

Meanwhile, Al Mazrouei said that investment in oil and gas capacity was  parallel to the full commitment to renewable energy and innovation. "We are currently promoting renewable energy in 70 countries, and are proud of the work that Masdar is doing in many parts of the world in this regard. Meanwhile, hydrogen has great potential, and we are one of the few countries with a clear roadmap for its utilisation. We are starting with blue hydrogen, as it is both available and affordable, but we are also collaborating in investing in the technology required to commercialise green hydrogen, which is the future,” he stressed.

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