Elements of Success for the UAE’s Oil Policy

  • 13 November 2014

On the sidelines of Abu Dhabi International Petroleum Exhibition Conference (ADIPEC 2014), which is being held in Abu Dhabi from Monday to Thursday (10-13 November), Secretary General of Organization of the Petroleum Exporting Countries (OPEC), H.E. Abdullah Al-Badri, said that the UAE is an influential country and a key player for the stability of international oil markets. “The UAE contributes significantly toward solving the problems faced by OPEC,” he said. The official said that he was impressed with the Emirati human resource during the exhibition and that Emirati citizens can achieve high ambitions as they are equipped with scientific knowledge and are capable of taking innovative initiatives.

The statement, from a leading international figure, lays bare several key components of the UAE’s oil and energy policy. The UAE’s role in the field of energy is not limited to being a major oil producer and a key player in renewable energy. It is among the nations which make immense contributions toward ensuring global energy security. The significance of this role has grown increasingly in recent times as the pressure on international oil and energy markets has grown due to structural changes on supply and demand. Meanwhile, the global economy is slowing down and competition among world energy producers is becoming intense.

The UAE plays a vital role as one of the nations which guarantee global energy security. This role has been reinforced by the UAE’s moderate policies and balanced approach. It seeks to achieve broader national objectives such as energy security, sustainable development, environmental balance, securing the UAE’s natural resources and energy supplies for future generations. It also seeks to meet the nation’s commitments toward international markets. It gives oil policy the flexibility, which enables the UAE to adjust oil production capacity and export in a way that guarantees market stability, which is central to global energy security.

The third aspect is that the UAE plays this role as a member of OPEC in complete coordination with other member countries. As a result, there is no place for unilateral practices or uncalculated decisions. This cooperative approach has a significant role as it enables OPEC to manage crises within the organization and protect the interests of its members. It also helps OPEC countries to overcome external crises that may emerge because of problems related to global oil and energy security.

The fourth and most important aspect is that the successful role played by the UAE and its distinguished policy in the realm of oil and energy, are implemented by local Emirati human resources who have scientific knowledge, talent for innovation, confidence and ambition. This success has been achieved at local and regional levels as well as within OPEC and international arena. That leads us to the conclusion that the UAE has the human capital that can guarantee continuity of its oil policy, enhance its vital role on global energy map, and be the guarantor of something broader, i.e. UAE’s sustainable development.