Hydrocarbon Revolution in the USA Changes the Role of the Key Players in the Market.
The Abu Dhabi National Oil Company (ADNOC) is one of the leading oil and gas producing corporations in the world. It is a state enterprise responsible for exploration and development of oil and gas reserves. Having become a completely state company in 1971, ADNOC since then has developed greatly, investing significantly into the sphere of oil production and processing. At the moment the company has 11 affiliates, covering all spheres of gas and oil industry, including producing (drilling on land and in the sea), technical provision of the works in the Bay, transportation with tankers, distribution of oil and oil products, production of fertilizing agents.
Under the request of NG-energy a London reporter Nataliya SPIVAK met the Chief Executive Officer of the Abu Dhabi National Oil Company His Excellency Mr. Abdulla NASSER AL SUWAIDI and ask the question about the prospects of the international hydrocarbon market.
What is your estimation for the prospects of the development of the global energy scenario considering opened American shale oil? Do you see any threat in the growth of its production in terms of five or ten years, including the threat of the reduction of oil price within worlds markets?
Deep deposits of shale oil and gas in the emirate of Abu Dhabi are still in their early evolutional phase, but the Abu Dhabi National Oil Company plans to drill a test well to study commercial viability. This is a natural progress for our gas industry and we are open to study potential strategic partnership in order to develop our capabilities in full scope in future.
Shale gas and oil from shale and combustible shale changes the conventional role of the producers and consumers in the energy business. In the USA big extracted resources from shale gas in combination with unexpected breakthrough in technology resulted in economically efficient energy source giving the industry a competitive advantage and stimulating healthy economic activity. There are no doubts that the industry shall face some obstacles, demanding new strategies and skills as the role of key players within the global energy market shall change. Nevertheless, the producers in Near East region shall maintain their significant role within satisfying of the world demand of energy carriers, as usual oil and gas supplies shall remain vitally important sources in the global energy balance for many years.
Which are the following plans of ADNOC?
Safety of supplies in accordance with adequate energy prices stands in the top of our priorities, as these factors together are important to assist the global economic growth and provision of the corresponding quality of life industrially developed countries, as well as in developing regions. In accordance with ADNOC’s mission in exploitation of oil and gas reserves to assure adequate and reliable supplies the company keeps on promoting its exploring, producing and processing infrastructures. Oil production, as expected, shall increase to 3.5 million barrels a day by 2017. In gas sector Abu Dhabi has started and successfully completed the tasks on development of the first non-conventional gas field. The gas field “Shakh” shall start production in the end of 2014, which in general shall enlarge gas supply to Abu Dhabi.
Do your mind, how OPEC shall react on possible reduction of oil prices? Shall it limit oil product or not? To your mind, shall the OPEC members be able to reach the common decision?
ADNOC operates under the control of the Supreme Petroleum Council (SPC) under the chairmanship of His Excellency Sheikh Khalifa bin Zayed Al Nahyaб the President and the emir of Abu Dhabi. The Supreme Petroleum Council (SPC) was established in 1988 for the development and control over petroleum policy of the whole Abu Dhabi emirate. More than 95% of oil in the UAE is produced in Abu Dhabi emirate, where SPC and ADNOC operate and performs control. Together with other parties involved in the United Arab Emirates, which includes Abu Dhabi emirate, the UAE Energy Ministry cooperates with other OPEC members in order to develop and give OPEC a stable position within the international market of crude oil in terms of supplies, demand and prices fluctuations. The UAE is an important member of OPEC, as they are a part of the top-ten world countries on crude oil reserves, production and export. Nevertheless OPEC is an involved party and a proper channel for additional information about oil prices, production rates, etc, as OPEC is a “cover organization” for all member-states, their joint discussions and single line.
At the moment solar energy is being actively promoted in the UAE. Does this induce a threat for the company? Which are your forecasts on solar energy development in the UAE? Which are the prospects of development of alternative energy in the country and the region?
– Solar energy should represent a threat for the company. ADNOC cooperates in the sphere of environmentally pure conventional forms of energy, as well as alternative and renewable ones, with the companies and institutions of Abu Dhabi. Our cooperation with the Environmental Agency of Abu Dhabi and the company Abu Dhabi for future energy represent several from multiple examples in this direction. This part of common plans of the government towards stable development accomplishment of the programs Abu Dhabi Vision 2030 and UAE Vision 2021, in which is it suggested to use significantly greater diversity of energy resources as we have today, shall lead to better diversification of the UAE economy. This year the 16th International Exhibition and Conference on Oil Products in Abu Dhabi, the main organizer and sponsor of which for many years has been ADNOC together with the Energy Ministry of the UAE, shall focus on gas. There is constant exchange of views between the member-companies and the analysis of documents, presented by them for the search of environmentally-friendly types of energy sources, including gas, which contributes to the common direction, adopted by the UAE Government of the use of all forms and sources of environmentally-friendly energy.
Translated by EuroDialogueXXI from NG.ru