The UAE is going ahead with its projects to increase crude production and is committed to supplying any shortage in the global oil market, the Energy Minister Suhail Al Mazroui said as Abu Dhabi International Petroleum Exhibition and Conference (Adipec) is set to begin on Monday.
“The United Arab Emirates is committed to increase its production capacity of crude oil to ensure the stability of oil markets. It also works to increase the refining capacity of crude oil within its efforts to meet the growing oil products demand,” he said.
The Minister said that the UAE as a member of the Organisation of Petroleum Exporting Countries (Opec) is committed to bridging the shortfall in supplies to the world market in the event of any disruption in the production of any member State.
“The market will determine the price of oil and that supply and demand will impose the correct price for producers,” he said about oil prices expressing his optimism about a gradual correction in oil prices in 2016.
Any predictions of large oil price swings in coming months were unrealistic, he added.
Oil prices have dropped by more than 50 per cent since last year from a peak of $115 (Dh422) per barrel to less than $50 per barrel due to a global glut in oil production.
A number of companies were forced to reduce spending to overcome losses.
Abu Dhabi National Oil Company (Adnoc) announced last week that they are cutting operating costs by up to 25 per cent because of the low oil prices.
Chevron Corp said it is planning to cut 6,000 to 7,000 jobs amid a gloomy outlook for oil prices. The spending in 2016 will be 25 per cent less than this year, according to the company.
Meanwhile, 14 National Oil Companies and 16 International Oil Companies will take part in Adipec this year. The event will be held from November 9 to 12 at Abu Dhabi National Exhibition Centre.
The world’s leading authority on energy and Pulitzer Prize-winning author, Dr Daniel Yergin will deliver the key note address.
The event will see the participation of a number of ministers, industry chiefs and top oil and gas professionals from across the globe.
More than 85,000 people are expected to visit the four-day event.
In an interview with Emirates News Agency, WAM, ahead of Monday’s opening of Adipec, Andrew Vaughan, Vice President of Shell for Abu Dhabi, Kuwait and Syria highlighted the company’s association with Abu Dhabi.
He said that Shell has a strong project and business portfolio in the Middle East and North Africa stretching back over 100 years in some countries, and continues to use its technology leadership to build an even stronger one for the future.
On the Bab Gas Development, a 30-year joint venture to develop the major Bab sour gas reservoirs in the Emirate of Abu Dhabi in 2013, in which Shell was selected to participate, Vaughan said that as Abu Dhabi’s economy continues to grow at an impressive rate, this growth is accompanied by an increase in energy needs, which means that new energy sources need to be found and developed, especially in the application of technologies to unlock “challenging” gas, including sour gas reserves such as Bab Field.
“A new natural gas development like Bab sour gas will benefit Abu Dhabi in terms of supplying local demand, but will also benefit the entire UAE since the gas network is a single system.”
Christopher Hudson, President — Global Energy, dmg events, organisers of Adipec, underlined the prominent role played by the event in shedding light on Abu Dhabi as a global hub for knowledge exchange.
“Adipec has become a landmark event that attracts major oil and gas companies, offering a distinct platform for the exchange of knowledge and experiences in the energy sector, and presenting endless opportunities for innovation,” he said.
The new features of this year’s event would be a dedicated waterfront location for the display of offshore, subsea, and marine products and services as part of Offshore and Marine Conference.
Energy Ministers from the UAE, Oman, Egypt and Gabon will take part in the ministerial panel on the innovation and sustainability in a new energy world.
Drop in oil prices and the impact on companies is set to dominate the discussions during the event.
By Fareed Rahman
© Al Nisr Publishing LLC 2019. All rights reserved.