Energy
From The Report: Abu Dhabi 2016
View in Online Reader

According to figures from the Statistics Centre – Abu Dhabi, in 2014 the mining and quarrying sector, including oil and gas, contributed Dh485.7bn ($132.2m) to Abu Dhabi’s GDP when measured at current prices. The emirate holds 94% of the UAE’s oil reserves and as of the end of 2014 the UAE had proven oil reserves of 97.8bn barrels, equivalent to 5.8% of the world total, placing the UAE eighth globally in terms of oil wealth. Alongside these reserves, the UAE is also home to the world’s seventh-largest reserves of natural gas, estimated at 215trn standard cu feet, with Abu Dhabi again holding the majority of resources. Although the delivery horizon for some new projects has been extended in light of the falling oil price, Abu Dhabi authorities remain committed to a long-term investment strategy that will see production reach a plateau of 3.5m bpd within the next two years. This chapter contains interviews with Sultan Al Jaber, CEO, Abu Dhabi National Oil Company (ADNOC); and Mohamed Jameel Al Ramahi, CEO, Masdar.

Articles from this Chapter

Overview

Thinking big: Major developments on the regional and global stage are leading to a variety of local improvements
OBG
plus

While Abu Dhabi continues to diversify its economy, oil and gas nevertheless remain the emirate’s mainstays, representing more than half of GDP in 2015 and accounting for more than 90% of government revenues, according to figures from the Statistics Centre - Abu Dhabi (SCAD). Despite the impact of low oil prices on the sector, the government remains committed to expanding production and has targeted a new plateau of 3.5m barrels per day (bpd) within the next two years. In order to meet that goal,…

Interview

Maintaining a competitive edge: OBG talks to Sultan Al Jaber, UAE Minister of State; and CEO, Abu Dhabi National Oil Company (ADNOC)
OBG
plus

Interview:Sultan Al Jaber With Abu Dhabi’s growing demand for gas, how does ADNOC plan to ensure future supply for its own operations and for the emirate? SULTAN AL JABER: Without a doubt, meeting Abu Dhabi’s growing demand for gas is a critical objective and rests high on ADNOC’s list of priorities. We are pursuing a variety of solutions across our portfolio, from conventional and sour gas all the way to a floating storage and regasification unit (FSRU). Last year Al Hosn Gas, the…

Analysis

Wasting no time: OPEC’s moves to retain market share mask a subtle power shift in the global oil market
OBG
plus

After several years of bumper oil prices, including what at one point seemed a new normal of $100 per barrel, crude oil-producing nations now have to accept that energy markets are once more interesting. However, while significant attention has been focused on the price war between OPEC and US shale, the current slump in prices is also revealing the shifting sands of power in the global oil market, and the increasingly fundamental role of China within it. Rising Influence The current drop in prices…

Analysis

A changing market: The federal government changes the way fuel is priced in the UAE
OBG
plus

July 2015 marked a watershed moment in the Arab Gulf’s decades-long history of cheap oil, as the UAE became the region’s first country to remove subsidies for transport fuel. Abu Dhabi-based daily The National reported on July 28, 2015 that prices for 95-octane unleaded petrol rose overnight from Dh1.72 ($0.47) per litre to Dh2.14 ($0.58), as the Ministry of Energy (MoE) switched to a pricing model that more closely reflects the global market. While the move was variously described as both a…

Analysis

Meeting demand: The emirate’s gas industry is investing in new and expanded production
OBG
plus

Despite being home to the world’s seventh-largest natural gas reserves, with 215trn standard cu feet (scf), according to the “BP Statistical Review of World Energy 2015”, the UAE has been a net importer of gas since 2008. Indeed, according to the US Energy Information Administration (EIA), over the past decade the UAE’s imports of natural gas have risen significantly from just 7bn scf in 2003 to 685bn scf in 2013. Far from running out of gas, the current situation reflects the complicated…

Interview

New prospects: OBG talks to Mohamed Jameel Al Ramahi, CEO, Masdar
OBG
plus

Interview:Mohamed Jameel Al Ramahi How would you characterise the mindset of financial institutions in terms of their comfort with funding renewable energy projects? MOHAMED JAMEEL AL RAMAHI: Financing is a obviously a key element of utility and infrastructure projects considering the sums involved. Historically, at Masdar, we have sought collaborations with international commercial and development banks. But there is plenty of room to accommodate local financial institutions now that the…

Analysis

New deal: Onshore production in the emirate is gradually entering a new era
OBG
plus

For the past two years Abu Dhabi’s onshore oil industry has been slowly transitioning to a new era. As of January 2014, the concession agreements that had defined the sector from its earliest beginnings more than 75 years ago are no more. As of late 2015, however, the outline of the new concessions had only partially taken shape. In determining the composition of its new partners for onshore production, the Abu Dhabi National Oil Company (ADNOC) will attempt to balance strategic considerations…

Analysis

Offshore expansion: New fields aim to make offshore oil responsible for around half of production
OBG
plus

With many of the emirate’s onshore oilfields reaching maturity, plans to expand future production to 3.5m barrels per day (bpd) will mean a much bigger role for the emirate’s offshore sector. Indeed, the next five years will see more than $25bn invested in offshore production, as the government hopes to reach the 3.5m bpd goal by 2017, according to an April 2015 report from Abu Dhabi-based newspaper The National. Long History Offshore production has been a part of Abu Dhabi’s oil industry…

Analysis

Capturing potential: The oil industry is looking to harness more carbon dioxide to enhance recovery
OBG
plus

As greenhouse gas emissions continue to rise and the threat of global warming looms ever larger, the world faces a conundrum: how to reduce the amount of harmful CO being released into the atmosphere in a global economy that continues to rely on fossil fuels for the majority of its energy requirements. One potential solution is carbon capture and sequestration (CCS) technology, which involves the installation of CO strippers at either the pre- or post-combustion stage of energy generation to remove…

Analysis

Green investment: The emirate looks to renewable energy both at home and abroad
OBG
plus

While fossil fuels remain the mainstay of Abu Dhabi’s economy, in recent years the emirate’s authorities have nonetheless expended considerable efforts to place it at the forefront of global initiatives to advance renewable energy. The culmination of these efforts occurred in June 2015, when Abu Dhabi’s Masdar City played host to the opening of the global headquarters of the International Renewable Energy Agency (IRENA). The opening of the organisation’s new purpose-built offices, in what…

Analysis

Leaders of tomorrow: Industry initiatives are focusing on improving domestic capacity through knowledge transfer
OBG
plus

The Abu Dhabi authorities have set an ambitious recovery target of 70% for the emirate’s maturing oilfields. Achieving this goal will require the implementation of sophisticated advanced technology, including enhanced oil recovery (EOR) techniques. At the same time, Abu Dhabi National Oil Company (ADNOC) has set a sector goal of 75% Emiratisation by 2017, as reported by The National in early 2014. Meeting these combined goals is resulting in a renewed focus on research and development (R&D)…