UAE: World Energy leaders convene in Adipec 2024 Abu Dhabi
The rapidly rising global energy demand, particularly for renewable sources, calls for collaboration
and investment in various energy sectors while simultaneously addressing the unique needs of the
different regions, a panel of experts told Al Arabiya News presenter Hadley Gamble.
In a discussion moderated by Gamble at the 2024 Abu Dhabi International Petroleum Exhibition
and Conference (ADIPEC), the experts highlighted the evolving energy landscape, emphasizing the
need for a diversified energy mix to meet global energy demand, mainly renewable sources and
artificial intelligence (AI).
Governments across the globe must strengthen their commitment to both traditional and renewable
energy investments, to enhance renewable energy capacity and battery storage technologies, said
Suhail al-Mazrouei, the UAE’s Miniter of Energy and Infrastructure.
“[The UAE] will be tripling the capacity of renewable energy… that will require us to look differently
at the installed capacity, as we will be storing that energy,” al-Mazrouei said, highlighting the gulf
nation’s approach to energy investment and its focus on sustainability.
He added: “Our leadership… has thought of the future, as always. We are committed to invest in
bringing more resources in the future to ensure that the world has adequate oil and gas resources.”
The UAE will not only be investing in oil, al-Mazrouei said, but also in renewable, nuclear and
conventional energy.
“The demand is more on green energy for AI, not for coal,” he said.
On the panel was also Egypt’s Minister of Petroleum and Minerals, Karim Badawi, who discussed
efforts to reverse declining natural gas production by focusing on energy reforms and regional
collaboration to unlock gas reserves and enhance production capabilities.
“We would like to leverage the position of Egypt to unlock the potential of the gas reserves, not only
of Egypt but actually of the region and of the Mediterranean,” he said. “Egypt today has 60 percent
of its gas going to power stations… and we are working together to enable the gas to be used for
value-added derivatives,” he added.
Egypt is ranked fourth in the Middle East and North Africa for the value of energy projects, around
nearly $100 billion.
Global south’s energy needs
The global south has a crucial role of balancing energy availability, affordability, and sustainability,
especially for developing countries, while continuing to utilize traditional fuels alongside renewable
options to meet the rising energy demand.
“[The global south] will still need affordable, traditional fuels, at least for two decades, if not longer,”
India’s Minister of Petroleum and Natural Gas, Shri Hardeep Puri, said adding that in order to make
the transition to clean energy, “we have to survive the present.”
“Unless you do all three—availability, affordability, and sustainability—you’re going to be left out,”
he said. India is ranked fourth globally in renewable energy capacity, wind power capacity, and solar
power capacity.
Critical Minerals for AI
Addressing the important minerals needs to power AI, Uganda’s Minister of Energy, Ruth Ssentamu,
said her country has critical minerals essential for renewable energy and battery storage while also
advocating for foreign investment and technology transfer to benefit local economies.
Uganda’s Minister highlighted the country’s potential in critical minerals essential for renewable
energy and battery storage, advocating for foreign investment and technology transfer to benefit
local economies.
“Uganda has discovered numerous deposits of critical minerals—lithium, cobalt, graphite, nickel,”
Ssentamu said. “We want value addition to be done in Uganda so that our people can benefit from
the technology transfer.”
The minister also highlighted her country’s open investment policy, adding that foreign investors
would meet “very conducive environment with trainable human resources.”
Al Jaber rallies energy industry to lead world to next phase of sustainable socioeconomic growth
Dr. Al Jaber detailed how the industry can capitalise on the opportunities of the three global
megatrends of the rise of emerging markets, growth of artificial intelligence (AI) and energy system
transformation
Delivering a keynote address at the opening ceremony of the 40th edition of
ADIPEC, Dr. Al Jaber detailed how the industry can capitalise on the
opportunities of the three global megatrends of the rise of emerging markets,
growth of artificial intelligence (AI) and energy system transformation. He
explained that harnessing the megatrends requires unprecedented cross
sectoral integration to accelerate sustainable growth.
Dr. Al Jaber noted that targeted investment, enhanced grid and energy
infrastructure and enabling policies and regulation are crucial to unlocking the
transformative potential of the megatrends. ADNOC, he explained, is
embracing the megatrends and pivoting to new opportunities across the
energy value chain and around the world to future-proof its business, decarbonize and deliver longterm
sustainable value.
“We stand at the dawn of a new era of hope and possibility, defined by three megatrends: first, the
rise of the global south and emerging markets. Second, the transformation of energy systems, and
third, the exponential growth of Artificial Intelligence. These three megatrends present mega
opportunities that demand mega solutions,” Dr. Al Jaber said.
He highlighted that by 2050, the world’s population will grow by a further 1.7 billion, mostly in the
Global South and as a result, energy markets must shift and grow, and energy systems must be
transformed.
“Wind and solar will expand seven times. LNG will grow by 65 percent. Oil will continue to be used
for fuel and as a building block for many essential products. And as the world becomes increasingly
urban, demand for electricity will double. Adding to this demand is Artificial Intelligence. AI is one of
those era-defining breakthroughs that is changing the pace of change itself. It is redefining the
boundaries of productivity and efficiency. And it has the potential to accelerate the transformation
of energy systems and to supercharge low carbon growth.
“But the exponential growth of AI is also creating a power surge that no-one anticipated 18 months
ago. That’s when ChatGPT took off. A single prompt on ChatGPT needs 10 times more energy than
a google search. As AI expands, it will rely on a massive scale up of data centres for its huge and
fast-growing computational needs. Over the next 6 years, data centers will more than double, requiring
at least 150GW of installed capacity by 2030 and double that again by 2040,” Dr. Al Jaber said.
He noted that no single source of energy is going to be enough to cater for this demand and meeting
this demand sustainably will require harnessing diverse energy sources, from renewables and
nuclear to LNG, alongside advanced infrastructure and increased investment.
The UAE, he emphasised, is proactively adapting its energy systems and cited ADNOC’s
international growth strategy, which includes expanding its global gas footprint, making long-term
investments in the chemicals sector, enhancing battery storage solutions, and advancing lowcarbon
fuels and carbon capture.
Dr. Al Jaber highlighted the interconnectedness of energy and AI and urged an integrated, crosssectoral
response that meets the fast-growing energy needs of AI and leverages AI to transform
energy systems.
He explained that the UAE has built a thriving AI ecosystem that is fostering growth and low carbon
development and went on to detail how the adoption of AI is accelerating ADNOC’s strategy as the
company reaps the benefits of its early investments in the technology.
“For ADNOC, AI stands for applied intelligence. We chose to be one of the earliest adopters,
because we saw it as a strategic imperative to drive efficiency, unlock value, enhance growth, lower
emissions and future-proof our business.”
Dr. Al Jaber explained that ADNOC’s AI-driven strategy is a strategic imperative to future-proof the
company and drive efficiency at scale.
In delivering on ADNOC’s AI strategy, Dr. Al Jaber announced ENERGYai (Energy to the Power of
AI), ADNOC’s new transformative solution developed in partnership with AIQ, G42, and Microsoft.
This pioneering platform will be the first to apply agentic AI at scale within the energy industry,
capable of autonomously analysing vast datasets, making real-time decisions, and driving
significant operational improvements.
Dr. Al Jaber emphasised that ENERGYai represents ADNOC and the UAE’s commitment to
advancing practical, impactful AI solutions within the energy sector. He urged leaders across sectors
to adopt a unified, integrated response to the challenges and opportunities presented by these
megatrends.
He went on to explain that this is the reason why he convened global leaders in energy, technology
and investments at the ENACT Majlis in Abu Dhabi yesterday. He added that the engagement
reinforced how interconnected the megatrends are and helped to identify the solutions needed for
sustainable growth.
Sharing some of the key takeaways from the majlis, Dr. Al Jaber said, “We need more infrastructure
that is fit for purpose and fit for the future. We need investment in the power sector to grow to at
least 1.5 trillion dollars per year. We need enabling policies and regulations to accelerate and protect
those investments. And we need to leverage AI’s potential to optimize energy sources, predict peaks
and dips in demand and enhance battery storage.”
In closing, Dr. Al Jaber urged industry leaders to embrace the power of these transformative forces
and use ADIPEC 2024 as a launchpad for action and impact.
“The train is leaving the station. What we decide right now will decide our destiny. This is a moment
that will separate leaders from those who are left behind. And, when called on to lead, this industry
always steps up” Dr. Al Jaber said.
Share of natural gas production in U.S. tight oil plays increased
Natural gas produced from the three largest tight oil-producing plays in the United States has
increased in the last decade. Natural gas comprised 40% of total production from the Bakken, the
Eagle Ford, and the Permian compared with 29% in 2014.
Combined crude oil and natural gas production from these plays more than doubled over this period
as hydraulic fracturing—also known as fracking—and horizontal drilling have allowed producers to
access and extract more crude oil and natural gas from tight formations.
Note: 2024 represents year-to-date data through September. To calculate the barrel of oil
equivalent, we use a conversion factor of 6,000 cubic feet of gross natural gas production per 1
barrel of oil.
However, production of associated natural gas, which is natural gas produced from predominantly
oil wells, has increased more rapidly from these tight oil plays. Natural gas production from these
plays more than tripled—an increase of 22 billion cubic feet per day (Bcf/d)—over the period
compared with crude oil output, which more than doubled—an increase of 4 million barrels per day
(b/d).
We define oil wells as those with a gas-to-oil ratio (GOR) of less than or equal to 6.0 thousand cubic
feet of natural gas per barrel of oil produced (Mcf/b). We classify wells with a GOR of more than 6.0
Mcf/b as natural gas wells. Any increase in the GOR in an oil well means more natural gas per barrel
of oil is being produced. The GOR for a play represents the average share of natural gas production
from its individual wells.
Historically, the Permian, Bakken, and Eagle Ford plays have predominantly consisted of oil wells,
resulting in lower GORs for these plays.
As more oil and natural gas are released within a well, the GOR tends to progressively increase,
increasing the volume of associated natural gas produced per every barrel of oil.
Pressure within the reservoir declines as more oil is brought to the surface, which allows more
natural gas to be released from the geologic formation. The pressure will also decrease as more
wells are concentrated within an area.
(Table 10b), and Enverus DrillingInfo Note: 2024 represents year-to-date data through September.
In the Permian play, located in West Texas and southeastern New Mexico, the share of natural gas
produced relative to crude oil has remained relatively stable, although the GOR has steadily risen
from 3.1 Mcf/b (34% of total production) in 2014 to 4.0 Mcf/b (40%) in 2024. Natural gas production
in the Permian, the largest producing tight oil play in the United States, increased eight-fold in 2024
through September compared with 2014, and crude oil production increased six-fold.
In the Bakken play, located in North Dakota and Montana, the share of natural gas produced relative
to crude oil has historically been relatively low, averaging only 1.2 Mcf/b (16% of total production)
in 2014. However, the GOR increased to 2.9 Mcf/b (33%) in 2024, with average gross natural gas
production increasing 186% compared with 2014 while crude oil production increased just 14%.
In the Eagle Ford play, located in southwest Texas, the share of natural gas produced relative to
crude oil has remained the highest among these plays, increasing from 3.5 Mcf/b (37% of total
production) to 5.6 Mcf/b (48%). This increased GOR reflects a 14% increase in average natural gas
production and a 28% decrease in average crude oil production in 2024 through September
compared with 2014.
Oil trades in tight range ahead of US election result
Oil prices traded in a narrow range on Tuesday ahead of what is expected to be an exceptionally
close U.S. presidential election, after rising more than 2% in the previous session as OPEC+
delayed plans to hike production in December.
Brent crude futures ticked up 15 cents, or 0.2%, to $75.23 a barrel by 1011 GMT, while U.S. West
Texas Intermediate crude was at $71.65 a barrel, up 18 cents, or 0.3%.
“We are now in the calm before the storm,” IG market analyst Tony Sycamore said.
Oil prices had been supported by Sunday’s announcement from the Organization of the Petroleum
Exporting Countries and their allies, a group known as OPEC+, to push back a production hike by
a month from December as weak demand and rising non-OPEC supply depress markets.
Still, risk-taking remains limited with a busy week – including the U.S. election, the Federal Reserve’s
policy meeting, and China’s National People’s Congress (NPC) meeting – keeping many traders on
the sidelines, said Yeap Jun Rong, market strategist at IG.
For now, polls suggest the U.S. presidential race will be closely contested, and any delay in election
results or even disputes could pose near-term risks for broader markets or drag on them for longer,
added Yeap.
“Eyes are also on China’s NPC meeting for any clarity on fiscal stimulus to uplift the country’s
demand outlook, but we are unlikely to see any strong commitment before the U.S. presidential
results, and that will continue to keep oil prices in a near-term waiting game,” Yeap said.
Meanwhile, OPEC oil output rebounded in October as Libya resumed output, a Reuters survey
found, although a further Iraqi effort to meet its cuts pledged to the wider OPEC+ alliance limited
the gain.
More oil could come from OPEC producer Iran as Tehran has approved a plan to increase output by
250,000 barrels per day, the oil ministry’s news website Shana reported on Monday.
In the U.S., a late season tropical storm predicted to intensify into a category 2 hurricane in the Gulf
of Mexico this week could reduce oil production by about 4 million barrels, researchers said.
Ahead of U.S. weekly oil data on Wednesday, a preliminary Reuters poll showed on Monday that
U.S. crude stockpiles likely rose last week, while distillate and gasoline inventories fell.
Oil Rises as OPEC+ Delays Output Hike and Iran Steps Up Rhetoric
Oil advanced after OPEC+ agreed to push back its December production increase by one month
and tensions escalated again in the Middle East.
Brent rose as much as 2% to more than $74 a barrel, while West Texas Intermediate climbed toward
$71. The producer group had intended to begin returning 180,000 barrels a day from next month,
but they will now keep supply restrained for the rest of the year.
Meanwhile, Iran escalated its rhetoric against Israel with supreme leader Ayatollah Ali Khamenei
warning of a “crushing response” in a speech on Saturday. The Wall Street Journal reported that
Tehran told allies an attack would come after Tuesday’s US presidential vote but before January’s
inauguration and wouldn’t be limited to missiles and drones, as two previous strikes were.
“Concerns that OPEC was poised to oversupply a fragile market have been weighing significantly
on sentiment,” RBC Capital Markets LLC analysts including Helima Croft said in a Nov. 3 note. “A
continuing cycle of retaliatory strikes between Israel and Iran raises the risk that oil facilities will be
caught in the crosshairs.”
Oil prices have become increasingly volatile, with concerns of an oversupply next year and
lackluster demand in top importer China weighing against unrest in the Middle East, which supplies
about a third of the world’s crude. While futures fell early last week after the strike by Israel on Iran
avoided energy infrastructure, they later pared the decline on concerns the move lower was too
strong.
The oil market has a number of key events on the horizon this week, including the US election and
a meeting of China’s top legislative body. Saudi Aramco is also scheduled to release its official
prices for December, with the producer expected to lower its rates for Asia, according to a
Bloomberg survey.