Maintaining investments in oil and gas critical for energy security, says Dr Sultan Al JaberOct 05, 2022 by Energy Connects
Energy security is essential for social, economic and climate progress and the responsibility of the energy industry in maintaining energy security has never been clearer, according to His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of Abu Dhabi National Oil Company (ADNOC).
Speaking at forum in London, Dr Al Jaber said market sentiment does not reflect the real underlying fundamentals, tight spare capacity and long-term demand growth, according to an ADNOC statement.
Policies aimed at pulling the plug on the current energy system before new ones have been built are therefore misguided, he said. Dr Al Jaber said that for economic progress to be maintained, substantial investment is required in hydrocarbons, the energy source the world will rely on well into the future.
“We have seen that all progress starts and ends with energy security. And, as the world’s energy leaders, our responsibility in maintaining that energy security has never been more evident,” Dr Al Jaber said. “Yes, we must all commit to mitigating the impact of global energy supplies, but let’s keep our focus on capturing carbon, not cancelling production. Let’s hold back emissions, not progress.”
He went on to explain that partnerships with the energy sector were critical to a successful energy transition, noting that it represents the most complex, capital intensive project in human history and that no-one has more experience in delivering these kinds of projects than the energy industry.
“As COP27 approaches and the UAE prepares to host COP28, let’s advocate for an inclusive approach that takes advantage of the expertise of the people in the oil and gas industry. For the energy transition to succeed, the energy professionals need to be in the room, as equal partners alongside all other stakeholders,” he said.
The UAE is keen to work with partners to mitigate the impact of hydrocarbons on the climate and build on its expertise as a responsible and reliable regional leader in low and no carbon energy, he said.
ADNOC, he explained, is investing in greater production capacity of its signature crude, Murban, that has half the carbon intensity of the industry average and tripling its liquiefied natural gas (LNG) capacity to over 15 million tonnes per annum, supported by a 9.6 million tonnes per annum LNG production and shipping terminal in the Emirate of Fujairah.
ADNOC is also using advanced technologies and renewable solar and nuclear energy to reduce the carbon intensity of its oil and gas by a further 25% before the end of the decade, while putting in place the building blocks for the hydrogen value chain, as well as expanding the use of carbon capture and storage, the statement added.