ADIPEC 2022 to shape the future of the global energy industry
As the global energy system strives to achieve a balance between energy security and energy equity, ADIPEC this year will be the global platform for the oil and gas sector to showcase its evolving role in a pragmatic and progressive energy transition and find feasible solutions to the Energy Trilemma. Occurring strategically before COP27, ADIPEC will once again shape the global energy agenda and the industry’s effort to proactively identify and deliver solutions to support net-zero ambitions.
Ahead of ADIPEC 2022, His Excellency Suhail Mohamed Al Mazrouei, Minister of Energy and Infrastructure, United Arab Emirates, shares his invaluable perspectives with ADIPEC News on the opportunities for the sector, diversifying and decarbonising the global energy mix and the critical role of the UAE’s hydrocarbon industry.
Your Excellency, how is the world moving towards a more global diversified energy mix? What is the energy industry outlook for 2022-23?
The first half of 2022 demonstrated the strong recovery of global oil, gas and energy market fundamentals amid a swiftly changing energy landscape. We must recall that the world was already facing a critical energy crunch as global economic activities picked up pace following the pandemic.
Subsequent ground realities have made the market even tighter, thereby prompting countries to recalibrate their strategic priorities in the energy sector. Under the current circumstances, OPEC’s forecast of oil demand rising by 3.1 million barrels per day (bpd), represents solid growth and robust market demand when compared with pre-pandemic levels.
In addition, global investments in energy storage, carbon capture, and the hydrogen value chain increased last year, while the renewables sector saw more than US $365 billion invested. These are signs that the world is indeed moving towards a more diversified energy mix.
That’s why the current situation once again highlights the urgent need to invest in and develop more affordable, sustainable, reliable and modern energy systems that address the Energy Trilemma, and a critical component of that is to invest in the production of cleaner hydrocarbons. This is a priority for us in the United Arab Emirates and is an integral part of our commitment to raise energy productivity and ensure a stable global energy supply for the future.
What role is the UAE’s hydrocarbon industry playing in the journey to a lower-carbon future? What are your thoughts on the UAE’s diversification of energy sources?
The UAE plays a pivotal role in securing oil supplies around the world and is a supplier of some of world’s lowest carbon-intensive oil and gas. The UAE’s pursuit of low-carbon energy is based on the pillars of supply security, sustainability, and a cleaner future, and that’s why we have taken proactive measures for decarbonisation, curbing emissions and attracting the long-term capital investment needed for a sustainable future.
While we invest in and build a diversified energy system, we are also significantly augmenting the capacity of our hydrocarbons sector to strengthen energy security, boost economic stability and meet global demand. Our ambitious upstream investment plans will lead to an increase in the country’s oil production capacity to 5 million barrels. At the same time, our focus on diverse energy sources is not new – the UAE formulated an energy diversification and security strategy nearly 15 years ago and embarked on that journey to reduce carbon emissions.
Your Excellency, what are your thoughts on the UAE’s leadership of the global hydrogen market?
As a key contributor to the global sustainability movement, the UAE is well positioned to be a leader in the global low-carbon and clean hydrogen industry. It was during COP26 that we launched the UAE’s Hydrogen Leadership Roadmap, a comprehensive national blueprint to support low-carbon industries, contribute to the UAE’s Net-Zero by 2050 ambitions and establish it as a competitive exporter of hydrogen. The accelerating growth in green and blue hydrogen presents enormous opportunities, especially when considered with falling production costs.
That’s why various entities and stakeholders are currently collaborating to develop a cohesive hydrogen policy and regulatory framework that will accelerate the UAE’s National Hydrogen Strategy. The framework aims to clearly define policies, regulations, standards and certifications for the UAE’s emerging hydrogen industry to be globally competitive. We are fully committed to enabling the infrastructure, access to technology, regulations and the availability of human capital so that the UAE can be the hub of a thriving global hydrogen industry.
As the UAE prepares to host COP28, what is the global roadmap for a sustainable future for the energy industry?
The UAE is the first country in the Middle East and North Africa (MENA) to announce a Net-Zero by 2050 Strategic Initiative. Our endeavor is to build a balanced energy system which is both cost effective and reduces emissions, and that’s why the future of the energy industry in the UAE is not only promising but also sustainable.
COP28 in the UAE will be a watershed event based on inclusive dialogue with all stakeholders – including the energy industry – for a realistic energy transition. The world needs an energy transition that is both pro-climate and pro-growth, and takes into account the complex dynamics of the energy sector and the need to build capacity to cater to growing energy demand.
Your Excellency, how important will this year’s ADIPEC be in reconnecting the global energy industry ahead of COP27 and against the backdrop of the prevailing energy dynamics?
ADIPEC 2022 comes at a critical moment for the global oil, gas and energy industry. Now more than ever, the urgent global focus is on the need to ensure a secure and reliable energy supply, at an affordable cost, with minimal environmental impact.
Taking place just one week before COP27 and a year ahead of COP28, ADIPEC this year will be the global platform for the energy industry to discuss and deliberate the pathway to tackling the dual missions of delivering the world’s energy needs of today, while investing in the energy systems of the future. This year’s in-person ADIPEC will therefore be at the forefront of driving the new energy agenda in the decades ahead.
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