The UAE’s energy minister highlights the significance of ongoing investment in fossil fuels as the key factor influencing consumer fuel prices at the pump.
Prices Minister Suhail al-Mazrouei, at the ADIPEC energy industry event in Abu Dhabi, underscores the importance of looking beyond short-term consumer price considerations, emphasizing the need for sustained investment in the oil and gas sector.
Fuel Prices and Global Economy:
Al-Mazrouei addresses concerns about high crude prices impacting the global economy, clarifying that OPEC+ does not target specific oil price levels.
The OPEC+ producer group, comprising OPEC and allies led by Russia, extended oil output cuts through 2024, contributing to the recent surge in Brent crude prices.
Optimism on Oil Demand Growth:
OPEC Secretary General Haitham Al Ghais expresses optimism about oil demand growth while highlighting under-investment as a risk to energy security.
Stresses the importance of a collective effort by all stakeholders to address the lack of spare capacity in the oil industry and advocate for increased investment.
Financing Oil and Gas Investments:
Minister Mazrouei emphasizes that international and national oil companies require financial support for their investments in the oil and gas sector.
UAE’s Oil Production Expansion:
Mazrouei reveals the UAE’s plans to expand its oil production capacity to 5 million barrels per day (bpd) by 2027, up from the current 4.2 million bpd.
Vicki Hollub, CEO of Occidental Petroleum, warns that insufficient investments will drive energy prices higher, underscoring the industry’s need for sustained financial backing.
Get all the latest update on UAE Times Now
