UAE Says Well Positioned to Provide Low Cost, Low Carbon Energy

Dr. Sultan Ahmed Al Jaber participates in a virtual session of the Columbia Global Energy Summit. WAM
Dr. Sultan Ahmed Al Jaber participates in a virtual session of the Columbia Global Energy Summit. WAM
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UAE Says Well Positioned to Provide Low Cost, Low Carbon Energy

Dr. Sultan Ahmed Al Jaber participates in a virtual session of the Columbia Global Energy Summit. WAM
Dr. Sultan Ahmed Al Jaber participates in a virtual session of the Columbia Global Energy Summit. WAM

Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Special Envoy for Climate Change said the UAE is well positioned to provide low cost, low carbon energy as global demand returns and is expected to increase in line with economic growth, Emirates News Agency (WAM) reported Friday.

Speaking during a virtual session of the Columbia Global Energy Summit, Al Jaber said that increased demand for cost-efficient, lower-carbon energy positions the UAE at a competitive advantage and the United Arab Emirates is focusing on low carbon production.

"The UAE’s primary crude grade, Murban, is one of the least carbon-intensive in the world, with less than half the carbon intensity of the industry average. This creates a dual advantage for us – low cost and low carbon.

"So, in a world that needs more energy with fewer emissions, the UAE is stepping up to expand our low carbon crude capacity," WAM quoted Al Jaber as saying.

In a conversation with David Sandalow, Inaugural Fellow, Center on Global Energy Policy at Columbia SIPA, he explained that oil and gas will continue to play a major role alongside a diversifying energy mix and that diversifying the country’s energy mix is not only the responsible way forward, but can provide new economic opportunities.

"Using this approach, the UAE has grown its renewable investments from a low base fifteen years ago, to a leading position in the region. And today, thanks to the long-term commitment of our leadership, the UAE has three of the largest and lowest-cost solar projects in the world with significant renewable energy projects in thirty countries globally.

"In order to accelerate our progress on a lower carbon path, we need to leverage every clean energy source available, including wind, solar and other renewable energies. This comprehensive approach means also using nuclear energy," Al Jaber said.

He went on to describe how the UAE is a partner of choice across the entire traditional and alternative energy landscape, including hydrogen, which shows great promise as a zero-carbon fuel that could be produced at scale as part of the existing hydrocarbon value chain. He added that the UAE is well-positioned to leverage its existing gas infrastructure to develop blue and green hydrogen.

"We are working with existing and new partners around the world to identify markets, map out value chains and develop a roadmap to create a hydrogen ecosystem to serve both the UAE and the global marketplace. This is just one area that demonstrates how the hydrocarbon industry can and should be at the center of the conversation on climate change and very much part of the solution."

During the session, Al Jaber touched on the Agriculture Innovation Mission for Climate (AIM4Climate) announced by the UAE and the United States with the support of seven other countries last month and shared insights on why the UAE is taking the lead on the initiative which is aimed at increasing research and development (R&D) investment and accelerating innovation into sustainable agricultural practices.

"The UAE has always taken a holistic view when it comes to climate solutions and Agriculture is sometimes overlooked as a significant source of emissions. Nearly a quarter of all greenhouse gas emissions come from agriculture; that’s basically the same GHG contribution as electricity generation. This is one of the reasons why the UAE joined with the US and a growing coalition of countries to launch AIM4Climate.

"As a country in an arid part of the world, we are already leveraging new technologies and innovative approaches to enable sustainable farming in desert conditions. We believe that by doubling down on investment in 4IR technologies, we can help the agricultural sector adapt to the impacts of climate change, reduce emissions, and also support growth, opportunity and jobs in the emerging agri-tech sector," Al Jaber said.



Oil Prices Ease but Remain Near 2-week Highs on Russia, Iran Tensions

FILE PHOTO: Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford//File Photo
FILE PHOTO: Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford//File Photo
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Oil Prices Ease but Remain Near 2-week Highs on Russia, Iran Tensions

FILE PHOTO: Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford//File Photo
FILE PHOTO: Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford//File Photo

Oil prices retreated on Monday following 6% gains last week, but remained near two-week highs as geopolitical tensions grew between Western powers and major oil producers Russia and Iran, raising risks of supply disruption.
Brent crude futures slipped 26 cents, or 0.35%, to $74.91 a barrel by 0440 GMT, while US West Texas Intermediate crude futures were at $70.97 a barrel, down 27 cents, or 0.38%.
Both contracts last week notched their biggest weekly gains since late September to reach their highest settlement levels since Nov. 7 after Russia fired a hypersonic missile at Ukraine in a warning to the United States and UK following strikes by Kyiv on Russia using US and British weapons.
"Oil prices are starting the new week with some slight cool-off as market participants await more cues from geopolitical developments and the Fed’s policy outlook to set the tone," said Yeap Jun Rong, market strategist at IG.
"Tensions between Ukraine and Russia have edged up a notch lately, leading to some pricing for the risks of a wider escalation potentially impacting oil supplies."
As both Ukraine and Russia vie to gain some leverage ahead of any upcoming negotiations under a Trump administration, the tensions may likely persist into the year-end, keeping Brent prices supported around $70-$80, Yeap added.
In addition, Iran reacted to a resolution passed by the UN nuclear watchdog on Thursday by ordering measures such as activating various new and advanced centrifuges used in enriching uranium.
"The IAEA censure and Iran’s response heightens the likelihood that Trump will look to enforce sanctions against Iran’s oil exports when he comes into power," Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia said in a note.
Enforced sanctions could sideline about 1 million barrels per day of Iran’s oil exports, about 1% of global oil supply, he said.
The Iranian foreign ministry said on Sunday that it will hold talks about its disputed nuclear program with three European powers on Nov. 29.
"Markets are concerned not only about damage to oil ports and infrastructure, but also the possibility of war contagion and involvement of more countries," said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Investors were also focused on rising crude oil demand at China and India, the world's top and third-largest importers, respectively.
China's crude imports rebounded in November as lower prices drew stockpiling demand while Indian refiners increased crude throughput by 3% on year to 5.04 million bpd in October, buoyed by fuel exports.
For the week, traders will be eyeing US personal consumption expenditures (PCE) data, due on Wednesday, as that will likely inform the Federal Reserve’s policy meeting scheduled for Dec. 17-18, Sachdeva said.