Dubai: The global energy markets will require more of the balancing act as competing factors try to add more volatility, according to a top official with the UAE Ministry of Energy and Infrastructure.
With the US Presidential election this week and the Middle East conflict showing few signs of easing up on the intensity, oil prices remain on edge, trading at just over $70 a barrel.
That’s not all.
“The significant disruptions in energy markets - primarily due to geopolitical events - have underscored the critical importance of energy security and affordability and the urgent need to transition to a low-carbon energy system,” said Sharif Al Olama, Undersecretary for Energy and Petroleum Affairs at the Ministry of Energy and Infrastructure.
“Maintaining a stable global energy market requires collaboration, foresight, and proactive measures. Through effective cooperation, countries can collectively build a balanced and coordinated energy landscape that makes our energy systems resilient to challenges and puts all of us on track for a sustainable energy-secure future.”
This theme will be sounded out more stridently as the annual ADIPEC event opens in Abu Dhabi. Progress continues to be made on developing renewable and clean energy, but there is no displacing oil and gas in the energy mix.
“Even while its share in the energy mix declines, oil remains the fuel with the largest share,” said Al Olama. “Ensuring a balance between supply and demand is crucial for the stability of the energy market.
“External factors such as political tensions and economic fluctuations can disrupt market stability. As the UAE continues to play a significant role in the global energy market, it is crucial to address these challenges and ensure a stable and sustainable future for the industry.
“We will continue supporting OPEC and OPEC+ ongoing efforts in securing energy supply - while we transition to cleaner energy sources.”
ADIPEC as a platform for dialogue
During ADIPEC ‘24, the UAE intends to ‘engage and forge partnerships to drive and accelerate the clean energy agenda’.
“A special focus will be on engaging the private sector because a low-carbon future can only become a reality with its active engagement and full commitment,” said Al Olama.
“Our partners from the private sector are responsible for decarbonizing their operations, monitoring and reporting their emissions, offering low-carbon goods and services, supporting R&D and innovation drives for developing clean technologies and solutions. And channeling investment into climate-friendly projects.”
We will continue supporting OPEC and OPEC+ ongoing efforts in securing energy supply for the years ahead, while we transition to cleaner energy sources
But the heavy lifting on switching to sustainability still vests with the government and government owned or backed entities.
“Our efforts to diversify the future energy mix align with global trends and the concerted drive to address the challenges of climate change,” said Al Olama.
“The UAE’s renewables industry is one of the fastest growing in the world, and the trend is expected to continue as we aim to reach a total capacity of 14.2GW by 2030. Today, the UAE is home to three of the world’s largest single-site solar plants, with many other mega projects under development.”
The UAE is investing up to Dh200 billion by 2030 to meet its energy requirements, a strategy that will see the country triple its renewable energy capacity by 2030 and increase the share of installed clean energy capacity to 30% by 2031.
The target is reduce energy consumption through ‘improved efficiency by up to 45% by 2050’.
There is also the ‘National Hydrogen Strategy’. which targets a production of 1.4 million tons of low-emission hydrogen per annum by 2031, and then raising it to 15 million tons by 2050. “And establishing two hydrogen oases by 2031 and increasing that number to five by 2050,” said Al Olama.
