With nearly 100 billion bbls in reserves, the UAE can be forgiven for not being too alarmed by the current dip in global oil pricing.
And with nearly 92 billion of those bbls in Abu Dhabi alone, much of it in Zakum field – the Middle East region’s third largest – one can begin to understand better the patient, long term view which the country’s leaders have chosen to adopt.
The UAE currently produces around 3 million bbls of oil per day, and that figure, say industry sources, is not likely to be scaled back any time soon.
Industry experts are confident that Abu Dhabi’s energy sector will continue to demonstrate resilience, with investment targets remaining as planned.
Bloomberg, in January 2015, quoted the UAE’s Minister of Energy, H.E. Suhail Al Mazroui, as saying the UAE will not change its development plans due to crude price fluctuations.
“Most of the projects are committed and under construction, and we don’t foresee any delays on the capacity expansion,” he said. “But building the capacity is something and using it is something else. We will always be wise and considerate of the world supply and demand.”
One such committed project is the 40-year concession granted by Abu Dhabi’s Supreme Petroleum Council to French giant, Total, which took effect from 1 January of this year. Under the new arrangement, the company will aim for a 70% recovery rate from the ADCO oilfields.
US industry leader, ExxonMobil, is also squarely focused on development in Abu Dhabi, with new agreements in place to further develop Upper Zakum.
Meanwhile, Occidental Petroleum of the US has won a contract from Abu Dhabi National Oil Company (ADNOC) to help evaluate the Hail and Ghasha oilfields.
The UAE hosts the world’s biggest energy companies at its Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) event each autumn, and every year the event grows in size and stature, creating a global meeting place for those who shape the industry.
“Industry professionals are confident that the energy sector will continue to realize success through the global commitment to innovation and technology, and having an international platform to share this knowledge and expertise is critical,” said Christopher Hudson, Vice President, Energy at dmg events.
“ADIPEC offers that global platform and serves as a central meeting place for senior executives and decision makers from the industry to learn about government decisions relating to energy policies, and explore the latest technologies that would help them achieve their short and long-term E&P objectives.”
“Last year, ADIPEC attracted more than 1800 exhibitors from 112 countries, with record participation from National and International Oil Companies, including firms from major market players Saudi Arabia, China, and Mexico. We are looking to break records once again this year with ADIPEC 2015,” Hudson added.
ADIPEC 2015 will take place 9 - 12 November, and is expected to attract more than 85 000 attendees, 2000 exhibitors, and 7000 delegates during the four-day event.
Adapted from a press release by David Bizley