Abu Dhabi National Oil Company (ADNOC), one of the world’s largest oil and gas companies, anticipates growth global energy demand from North and South America, amid technology advances and a surge in petrochemical demand from India and China, its CEO said.
UAE Minister of State and ADNOC Group CEO Dr Sultan Ahmed Al Jaber pointed out three key energy industry trends shaping ADNOC’s growth strategy during a session at CERAWEEK, the oil and gas industry event in Houston.
“Economic growth will drive energy demand up 30 per cent by 2040. That is the equivalent of adding the energy draw of North America and South America combined,” he said as the first key trend.
“Most of that growth will come from non-OECD countries and will require an estimated US$25 trillion in new investment,” Dr Al Jaber said. “That is a level of funding no company can deliver on its own. It’s only possible through new and productive partnerships, within the industry, as well as between the public and private sector.”
The second major trend is the technological revolution that is transforming the rate of new discoveries, increasing recovery rates, maximising efficiency and reducing cost around the globe, he said.
“Advanced seismic mapping has enabled further exploitation of reservoirs in North America, offshore Brazil, and transformed the Eastern Mediterranean into a major source of natural gas. Meanwhile, contribution from enhanced oil recovery is anticipated to expand and play a greater role across the industry,” Dr. Al Jaber said.
The third trend, H.E. Dr Al Jaber identified, is the exponential expansion of the petrochemical market. For example, global demand for ethylene-based products, he pointed out, will grow 150 per cent by 2040, mostly driven by emerging economies, primarily India and China. “ADNOC’s 2030 growth strategy focuses on tripling our petrochemical production capacity and diversifying our higher value products in line with this market opportunity,” he said.
H.E Dr. Al Jaber, responding to a question on the growing role of renewable energy, said, “It’s all about the economics of the energy mix. Renewables and hydrocarbons complement, rather than compete with each other. We have seen the price of solar decline to a point where it is price competitive with any other source, especially in our part of the world.
“Today, combining solar power with traditional energy, namely gas, makes perfect economic sense. The more renewables we use, the more we can redirect hydrocarbons to create higher value products.”