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Oil and gas sector 'needs $11 trillion of investment'

Adnoc chief executive Sultan Ahmed al-Jaber says significant spending still required to boost global production

Abu Dhabi National Oil Company’s (Adnoc's) chief executive Sultan Ahmed al-Jaber thinks $11 trillion-worth of investments will be required for the global oil and gas sector to keep up with growing energy demand for the next two decades.

Speaking at the World Energy Congress in Abu Dhabi, Jaber highlighted the need for a diverse energy mix, but added that oil and gas would dominate the energy mix for many more years.

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“Here in the UAE, we have created an ecosystem that supports all forms of energy, from oil and gas to renewables and nuclear energy. Having said that, we know that the world will still rely on oil and gas as the majority source of power for many decades to come,” he said.

Jaber said that “over three times the amount of energy currently consumed by all of Europe will be added to global energy demand in the next two decades,” which will require the integration of a fully diversified energy mix by oil companies.

Jaber said Adnoc is on track with its production capacity expansion plans of 4 million barrels per day of oil by 2020 and 5 million bpd by 2030.

Adnoc is understood to have embarked on several onshore and offshore developments worth billions of dollars, as it plans to increase its production capacity over the next decade.

In addition, Jaber added, Adnoc is “tapping into gas caps, undeveloped reservoirs and unconventional resources,” as it aims to unlock vast reserves of natural gas.

Jaber said the world needs more energy with fewer emissions and Adnoc would “continue to prioritise responsible production as it expands its operations.”

The Adnoc chief executive claimed the company produces among the least carbon-intensive barrels in the world, with the lowest methane intensity.

Jaber said Adnoc is investing in technology that captures significant amounts of carbon dioxide from industrial sources and has laid down major expansion plans.

“We launched the region’s first commercial-scale carbon capture, utilisation and storage facility in 2016 and over the next decade we will expand this programme six times,” he added.

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Jaber said that Masdar, Abu Dhabi’s green energy company, has invested in 4 gigawatts of renewable energy projects across the globe, which could go a long way in bringing the emirate’s plans for energy diversification to fruition.

He added that the Barakah nuclear energy plant would also significantly contribute to the emirate’s plans to diversify its energy mix.

The Barakah plant is being developed by the Emirates Nuclear Energy Corporation (Enec)is thought to be nearing its completion, with local media reports suggesting that its construction is almost 93% complete. The nuclear plant is expected to be operational by the end of this year.

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