Abdulaziz bin Salman Stresses Saudi-UAE Cooperation for Future Energy Mix

Saudi Energy Minister Prince Abdulaziz bin Salman, addresses the ADIPEC conference on Monday (AP)
Saudi Energy Minister Prince Abdulaziz bin Salman, addresses the ADIPEC conference on Monday (AP)
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Abdulaziz bin Salman Stresses Saudi-UAE Cooperation for Future Energy Mix

Saudi Energy Minister Prince Abdulaziz bin Salman, addresses the ADIPEC conference on Monday (AP)
Saudi Energy Minister Prince Abdulaziz bin Salman, addresses the ADIPEC conference on Monday (AP)

Saudi Energy Minister Prince Abdulaziz bin Salman stressed that Saudi Arabia and the UAE were working to increase production capacity, enhance refining volume, and convert oil into petrochemicals.

He noted that the two countries were seeking to provide a safe and sustainable energy system.

In his speech on the sidelines of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) on Monday, the Saudi minister said: “We and the UAE - one of the largest oil producers in the world… will cooperate to set the rules for the future energy mix.”

Prince Abdulaziz bin Salman described Saudi Arabia and the UAE as “twins” in the measures taken to address energy production and climate change.

“If we look at the conferences that we host in Saudi Arabia and the UAE, the message we send is that we are present, proactive, and we will be vigilant. None of the limited calls will deter us from focusing on our future; because if we lose focus on the future, we will repeat what is happening today,” he remarked.

Suhail Al Mazrouei, UAE Minister of Energy, said that OPEC+ was keen to provide the world with the oil supplies it needs, stressing that the alliance that includes major producers would always be in a position to achieve balance in the markets.

He added that OPEC+ was always willing to balance crude oil markets if required and if consumers require help, the alliance was “only a phone call away”.

For his part, US Energy Envoy Amos Hochstein noted that energy must be priced in a way that allows economic growth, adding that the oil and gas sector needed more investment.

He also told the conference that the relationship between the United States and the UAE is “strong, long-standing and enduring.”

Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of the Abu Dhabi National Oil Company (ADNOC), stressed that the world needed more energy with less emissions to ensure the security and sustainability of supplies.

He explained that ADIPEC was being held amid complex conditions facing the world.

“Here are the hard facts: Global supply chains continue to be fragile. Geopolitics are now more complex, fragmented and polarized than ever,” he said.

“As a result, the global economy is in a critical situation,” he warned.

Al Jaber continued: “If we zero out hydrocarbon investment due to natural decline, we would lose five million barrels per day of oil each year from current supplies. This would make the shocks we have experienced this year feel like a minor tremor. If this year has taught us anything, it taught us that energy security is the foundation of all progress – economic, social and climate progress.”

The CEO of ADNOC emphasized that the world needed all available solutions to secure its energy needs.

“It is not oil and gas, or solar, not wind or nuclear, or hydrogen. It is oil and gas and solar, and wind and nuclear, and hydrogen. It is all of the above, plus the clean energies yet to be discovered, commercialized and deployed. The world needs maximum energy, minimum emissions,” he underlined.

The Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC 2022) kicked off on Monday in the UAE capital under the patronage of Sheikh Mohamed bin Zayed Al Nahyan, President of the Emirates.

Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Presidential Court, inaugurated the 38th edition of ADIPEC, with a wide participation of regional and international stakeholders.



OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters
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OPEC Again Cuts 2024, 2025 Oil Demand Growth Forecasts

The OPEC logo. Reuters
The OPEC logo. Reuters

OPEC cut its forecast for global oil demand growth this year and next on Tuesday, highlighting weakness in China, India and other regions, marking the producer group's fourth consecutive downward revision in the 2024 outlook.

The weaker outlook highlights the challenge facing OPEC+, which comprises the Organization of the Petroleum Exporting Countries and allies such as Russia, which earlier this month postponed a plan to start raising output in December against a backdrop of falling prices.

In a monthly report on Tuesday, OPEC said world oil demand would rise by 1.82 million barrels per day in 2024, down from growth of 1.93 million bpd forecast last month. Until August, OPEC had kept the outlook unchanged since its first forecast in July 2023.

In the report, OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd, Reuters.

China accounted for the bulk of the 2024 downgrade. OPEC trimmed its Chinese growth forecast to 450,000 bpd from 580,000 bpd and said diesel use in September fell year-on-year for a seventh consecutive month.

"Diesel has been under pressure from a slowdown in construction amid weak manufacturing activity, combined with the ongoing deployment of LNG-fuelled trucks," OPEC said with reference to China.

Oil pared gains after the report was issued, with Brent crude trading below $73 a barrel.

Forecasts on the strength of demand growth in 2024 vary widely, partly due to differences over demand from China and the pace of the world's switch to cleaner fuels.

OPEC is still at the top of industry estimates and has a long way to go to match the International Energy Agency's far lower view.

The IEA, which represents industrialised countries, sees demand growth of 860,000 bpd in 2024. The agency is scheduled to update its figures on Thursday.

- OUTPUT RISES

OPEC+ has implemented a series of output cuts since late 2022 to support prices, most of which are in place until the end of 2025.

The group was to start unwinding the most recent layer of cuts of 2.2 million bpd from December but said on Nov. 3 it will delay the plan for a month, as weak demand and rising supply outside the group maintain downward pressure on the market.

OPEC's output is also rising, the report showed, with Libyan production rebounding after being cut by unrest. OPEC+ pumped 40.34 million bpd in October, up 215,000 bpd from September. Iraq cut output to 4.07 million bpd, closer to its 4 million bpd quota.

As well as Iraq, OPEC has named Russia and Kazakhstan as among the OPEC+ countries which pumped above quotas.

Russia's output edged up in October by 9,000 bpd to about 9.01 million bpd, OPEC said, slightly above its quota.