UAE the Leading Promoter of Global Energy Security
- 4 July 2013
The UAE plays a pivotal role in the global energy markets. At a volume amounting to 97.8 billion barrels, the country now has the sixth largest oil reserves in the world. The UAE, which is a top oil producer/exporter, is also a prominent member of the Organization of Oil Exporting Countries (OPEC) and a key player in the international oil map. It plays an influential role in shaping the international oil market trends. As a result, the UAE’s oil policy plays a crucial role in maintaining international oil market stability and global energy security in general.
The UAE pursues a very balanced and flexible oil policy, which is extremely responsive to international developments. It has been effectively dealing with global developments and is able to attain goals aimed at stabilizing oil markets and securing global energy supplies besides fulfilling economic interests of the country. The UAE Master Plan of overhauling its oil sector, and increasing productivity to 3.5 billion barrels a day by the turn of this decade, is another landmark in this direction.
Although the UAE is currently focused on its role as a producer and exporter of oil, the future is likely to witness an ambitious UAE energy policy, based on diversification of sources of energy, and increasing the capacity of alternatives such as natural gas and renewable energy. The government is increasing the productivity of its natural gas sector so that it copes up with the increasing demand, especially of electricity. The government recently announced $25 billion worth investments to carry out several new projects in this sector over the next five years. Major investments in renewable and nuclear energy have already been underway, thus making the UAE a top investor in this sector world-wide.
In addition to meeting local demand for energy, which currently stands at 7 percent annually, the UAE plans to increase energy sector productivity. This is likely to expand the UAE’s maneuverability, while dealing with global oil and energy market developments, by increasing production to offset any sudden increase in global demand, or a crisis that could stop the flow of shipments. This will further enhance the UAE’s role in the security and stability of global energy.