Oil industry is far from reaching a downward spiral, says ADNOC chief
Even during peak pandemic, demand dropped to below 90mbd for only 12 weeks
Abu Dhabi: Long-term fundamentals of the oil industry still remain intact, according to Sultan Al Jaber, UAE’s Minister of Industry and Advanced Technology and CEO of Abu Dhabi National Oil Company (ADNOC).
“We expect oil demand will grow to over 105 million barrels per day by 2030 and continue to supply over half the world's energy needs for many decades to come,” said Al Jaber during a keynote speech at the ADIPEC oil and gas event. He added that even at the height of the lockdowns in March and April, the world still consumed 75 million barrels of oil per day.
“In fact, by our estimates, oil demand fell below 90 million barrels of oil per day for only 12 weeks. So, we know the world still needs oil and gas – that is a fact,” he said.
Oil and gas giants are looking to tap into the market for petrochemicals, used in everything from plastics to automobiles, to drive future revenue growth. “Petrochemical sector will continue to grow at a healthy pace - through and beyond 2050 - in line with a steadily expanding global middle-class. These are long-term positive trends, and they highlight the central role that our industry can and should play in a post-COVID-19 recovery.”
Maximizing
ADNOC has been divesting its stake in assets to weather the drop in oil prices. “We entered a $20 billion pipeline (deal) and unlocked $5.5 billion in value from our real estate assets,” said Al Jaber. “These deals were struck in the most difficult year for the global economy in recent memory, and they prove the enduring and underlying value of our industry.”
Most recently, Abu Dhabi Pension Fund (ADPF) and ADQ, the holding company for multiple assets, announced the investment of $2.1 billion in select gas pipeline infrastructure assets owned by ADNOC. “Our industry has brighter days ahead and there is even more value to be captured,” the CEO said.