The Abu Dhabi National Oil Company (Adnoc) deserves praise for it recent successes, which were highlighted with the announcement that the UAE has improved its global ranking in total reserves for both oil and gas and approved the listing of its Murban crude on an international exchange.
In both proven oil and gas reserves, the UAE improved from seventh to sixth position globally.
The new discoveries included seven billion barrels of crude oil and 58 trillion cubic feet of natural gas.
Dr Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO, noted that under the leadership’s directives, Adnoc is adopting more creative strategies and more flexible business models, while shaping value-added partnership opportunities to remain resilient and meet operational and financial targets in today’s unpredictable energy markets.
Maintaining those strategies has and will continue to be challenging, as the oil and gas markets have been highly volatile since the 2014 price crash. While prices have fluctuated, often wildly, due to geopolitical tensions and a persistent oil glut caused by the development of shale oil, Adnoc has succeeded in discovering and developing proven reserves and economy stability.
That the UAE continues to make such highly notable achievements in such a highly competitive market is itself a strong commentary on the country and its leadership.
While the UAE has successfully diversified its economy away from oil’s previous dominance, the industry still contributes heavily to the national economy. Securing the country’s crucial reserves safeguards and stabilises its long-term economic outlook.
While the UAE has successfully diversified its economy away from oil’s previous dominance, the industry still contributes heavily to the national economy. Securing the country’s crucial reserves safeguards and stabilises its long-term economic outlook
The decision to place Murban crude, which is recognised the world over for its intrinsic chemical qualities and its consistent and stable production volumes, will make Murban an even more attractive crude to the global market. The initiative will enable customers and other market participants to better price, manage and trade their purchases.
This historic and strategic move cements the UAE, Abu Dhabi and Adnoc’s role in the international oil and gas sector. These achievements highlight Adnoc’s drive to ensure the company remains a trusted, reliable and responsible supplier of energy to the world for decades to come.
But the challenges that Adnoc has faced over the past four years are not over. The oil and gas markets remain volatile, and the current trade wars continue to impact the price and distribution of crude oil, in some cases considerably changing historic partnerships.
Adnoc and the UAE, especially in its role as a member of Opec, must continue to work to stabilise prices and further develop the oil industry.