Oil industry stands on threshold of historic step change in demand for its products
ABU DHABI -- The oil and gas industry stands on the threshold of an historic step change in the demand for its products, driven by growth in every major market, according to His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO.
Speaking at the 7th OPEC International Seminar, in Vienna, H.E. Dr Al Jaber said demand for oil and its derivative products is growing and the future of the oil and gas industry is bright due to robust global economic growth.
“While we can never predict the future price of oil, the global economic outlook gives us reasons for optimism,” H.E. Dr Al Jaber said. “Every major economy is growing and this is reinforcing demand for every product we supply along the extended hydrocarbon value chain.”
In opening remarks before participating in a panel discussion with Energy Ministers and IOC CEOs, Dr. Al Jaber noted the positive role that OPEC and non-OPEC producers have played together to help rebalance the market and re-stabilize prices.
“This is a success story based on trust and collaboration that is worth commending and acknowledging. In fact, it proves, once again, that OPEC’s ability to apply a constructive influence over the market is as strong today as it has ever been,” he said.
H.E. Dr Al Jaber made his comments during the opening keynote session, at the seminar entitled ‘Sustainable Global Energy Future’.
He was joined in the Keynote session by H.E. Mohammed bin Hamad Al Rumhy, Minister of Oil and Gas, Sultanate of Oman and H.E. Shri Dharmendra Pradhan, Minister of Petroleum and Natural Gas, India; Bob Dudley, Group Chief Executive, BP; Patrick Pouyanne, Chairman of CEO, Total; Claudi Descalzi, CEO, Eni; Scott D Sheffield, Executive Chairman of the Board, Pioneer Natural Resources and Nizar Mohammed Al-Adsani, Deputy Chairman and CEO, Kuwait Petroleum Corporation.
During the session, Dr. Al Jaber said ADNOC had learned the lessons of the recent past to re-imagine what a modern, progressive, integrated oil company should look like.
“We are embedding efficiency, commerciality and innovation into every aspect of our business. We will leave no stone unturned when it comes to optimizing costs and no avenue unexplored in the search for value creation,” H.E. Dr Al Jaber said, adding that while ADNOC is well on track to expand oil production to 3.5 MMbpd, it would adhere to OPEC quotas that “ensure sustainable supplies, stable prices and a fair, commercial return.”
Highlighting ADNOC’s plans to invest U.S. $45 billion to transform the Ruwais industrial complex into the largest integrated refining and petrochemicals site in the world, to maximize the value of the company’s downstream potential, H.E. Dr. Al Jaber said that ADNOC is “more than ready to collaborate with like-minded, progressive and forward thinking partners to capitalize together on the massive potential of our time.”
Earlier, the two-day International Seminar had been officially inaugurated by H.E. Suhail Mohamed Al Mazrouei, the UAE’s Minister of Energy and Industry, who is the President of the OPEC Conference, following welcome remarks by Mohammad Sanusi Barkindo, Secretary General of OPEC. The opening ceremony was attended by Energy Ministers, heads of delegations and oil and gas industry CEOs.
An OPEC spokesperson said the International Seminar is intended to provide fresh impetus to key petroleum industry issues and challenges, helping to enhance existing avenues of dialogue and cooperation, while stimulating new ones. It will seek to reinforce OPEC’s longstanding commitment to strive towards a secure and stable market in support of a healthy global economy. It will also highlight the need for continuing promotion of cooperation and dialogue with all oil industry stakeholders, including producers and consumers.
Some of the topics to be discussed include global energy cooperation, technological breakthroughs, energy transition, industry investments, as well as the world economy and the future outlook for the oil industry.
