Senior Adnoc Official Urges Efficient Use of Hydrocarbon Resources
- 20 November 2007
The current refining capacity of Abu Dhabi National Oil Company (Adnoc), is above 500,000 barrels per day, the company's marketing and refining director told Gulf News yesterday on the sidelines of 13th annual energy conference here.
The three-day conference, organised by the Emirates Centre for Strategic Studies and Research, is debating future Arabian Gulf energy sources-hydrocarbon, nuclear or renewable.
Sultan Ahmad Al-Muhairi, however, didn't say if Adnoc will raise state-set domestic gasoline prices in view of the steep rise in international crude oil prices, which are currently trading at record levels. "That will be the government's decision, it's not my decision," he said.
Al Muhairi also didn't comment on the UAE's annual domestic consumption of oil products.
In his speech at the ECSSR conference, Al Muhairi said: "High oil prices have brought with them massive cost inflation at a time when we are investing heavily in new oil and gas production capacity. Large-scale projects are costing double, and in some cases more than three times the price we would have expected to pay just a couple of years ago."
He said the United States Energy Information Agency (EIA) estimates that world use of petroleum and other liquids will grow from the current level of 87 million barrels of oil equivalent (mboe) per day to 97 million barrels per day in 2015, and 118 million barrels per day in 2030.
"Such predictions are clearly encouraging for Gulf members of the Organisation of Petroleum Exporting Countries (Opec) as they point to continued strong demand growth for our hydrocarbon production in the medium to long term," said Al Muhairi.
"The Middle East is currently recording some of the fastest-growing energy consumption rates in the world and, increasingly, we need to think like consumers as much as producers. Put simply, domestic consumption of oil and gas is absorbing an increasing proportion of our production.
"By developing renewable energy resources side by side with hydrocarbons, Arabian Gulf countries will be able to diversify their sources of energy. Likewise, we must examine ways of curbing consumption growth by focusing on energy efficiency. Oil is simply too precious a commodity to waste," Al Muhairi added.
Besides being a major oil producer, Al Muhairi said the UAE has chosen to invest heavily in alternative energy, which promotes not only energy conservation and lower costs, but a cleaner environment as well.
"It is clear to me that renewable energy and non-hydrocarbon energy increasingly represent more of an opportunity than a threat," he said.