Oil & Gas

The United Arab Emirates launched its annual oil-and-gas summit on Monday, affirming its commitment to increase energy output despite declining global prices and political uncertainties surrounding the upcoming U.S. presidential election. The Abu Dhabi International Petroleum Exhibition and Conference follows last year’s COP28 climate talks, where nearly 200 nations called for a transition away from fossil fuels. Nonetheless, the UAE plans to boost its oil production capacity to 5 million barrels per day while simultaneously investing in cleaner energy solutions.

Despite a decrease in crude oil prices, with benchmark Brent crude hovering around $74 a barrel, UAE officials remain optimistic about the future of fossil fuels. Sultan al-Jaber, head of the state-run Abu Dhabi National Oil Co. and COP28 president, emphasized the ongoing relevance of oil, stating it will continue to be essential for both fuel and various products. He highlighted the role of artificial intelligence in the energy sector, advocating for a diverse energy mix to meet the increasing demand for electricity.

UAE Minister of Energy and Infrastructure, Suhail al-Mazrouei, reinforced the need for sustained investment in oil and gas resources to support market demand, indicating that traditional energy sources will remain vital for the foreseeable future. He stressed that the UAE is committed to expanding its energy resources, ensuring a steady supply of oil and gas for global markets.

The summit also served as a backdrop for political discourse, with attendees speculating on the potential impact of the U.S. election on their business interests. While al-Mazrouei avoided direct comments on political preferences, he emphasized the UAE’s desire to maintain partnerships over political divides. Amidst these discussions, the UAE’s close ties with Russia were evident, highlighted by the presence of Russian oil firm Lukoil as a key partner in the summit, underscoring the complex dynamics of global energy politics.