Abu Dhabi’s national oil company to invest an additional $ 6 billion in crude drilling
Abu Dhabi’s national oil company on Tuesday announced a $ 6 billion investment in crude oil drilling as it ramps up production capacity.
The announcement comes a day after the United Arab Emirates (UAE) declared a recent United Nations climate summit in Glasgow a “success,” but the world must continue to invest billions in oil and the gas.
The United Arab Emirates is one of the world’s largest exporters of crude, averaging 4.2 million barrels per day.
The Abu Dhabi National Oil Company (ADNOC) said the $ 6 billion investment “would allow drilling to grow as it would increase its crude oil production capacity to 5 million barrels per day by 2030”.
ADNOC’s investments include contracts with several companies, some of which last for a decade, according to a statement issued on the second day of the Abu Dhabi International Petroleum Exhibition and Conference.
The United Arab Emirates and neighboring Saudi Arabia, the world’s largest oil exporter, have announced net zero-carbon targets, despite efforts to increase oil production.
The UAE has said it hopes to be carbon neutral by 2050.
Nearly 200 countries at the COP26 summit pledged on Saturday to speed up the fight against rising temperatures, after two weeks of negotiations.
However, UN Secretary General Antonio Guterres has warned that the “climate catastrophe” is still knocking on the door.
But Sultan al-Jaber, UAE Minister of Industry and Advanced Technologies, called the COP26 summit “a success,” speaking at the opening session of the Abu Dhabi conference on Monday.
He predicted that the oil and gas industry would have to invest “over $ 600 billion annually through 2030” just to meet expected demand.
“Yes, renewables are the fastest growing segment of the energy mix, but oil and gas are still the most important and will be for decades to come,” he said.
“Although the world has agreed to accelerate the energy transition, it remains heavily dependent on oil and gas.”
UAE Energy Minister Suhail Mohamed Al-Mazrouei said indications were of an oversupply of oil in the first quarter of 2022.
“2022 will be a year of balance between supply and demand,” he said on Monday.