FacebookInstagramTwitterContact

 

People's Representatives Invite People To Traffic Orderly           >>           Grand State Maulidur Rasul Procession In Miri To Involve 7,600 Participants           >>           All Except Three Sabah Districts Record New Infections           >>           Việt Nam Welcomes 1.87 Million Foreign Visitors In First Nine Months, Mostly From Asia           >>           Việt Nam Welcomes 1.87 Million Foreign Visitors In First Nine Months, Mostly From Asia           >>           Attapeu Municipality Flooded           >>           Elon Musk Asked To Provide Satellite Internet For Myanmar Fight Against Junta           >>           PH Ranks 59th At GII 2022, Still Recognized As An ‘Extraordinary Upward Mover’ – DOST           >>           Former KPK Officials To Defend Sambo, Wife Against Premeditated Murder           >>           Lower Electricity Tariffs From October To December After 6 Consecutive Hikes           >>          

 

SHARE THIS ARTICLE




REACH US


GENERAL INQUIRY

[email protected]

 

ADVERTISING

[email protected]

 

PRESS RELEASE

[email protected]

 

HOTLINE

+673 222-0178 [Office Hour]

+673 223-6740 [Fax]

 



Upcoming Events





Prayer Times


The prayer times for Brunei-Muara and Temburong districts. For Tutong add 1 minute and for Belait add 3 minutes.


Imsak

: 04:41AM

Subuh

: 04:51AM

Syuruk

: 06:08AM

Doha

: 06:30AM

Zohor

: 12:11PM

Asar

: 03:23PM

Maghrib

: 06:13PM

Isyak

: 07:22PM

 



The Business Directory


 

 



World Business


  Home > World Business


UAE Accelerates Plan To Increase Its Oil Production Capacity


 


 September 19th, 2022  |  21:14 PM  |   255 views

UAE

 

The United Arab Emirates is accelerating a plan to raise its oil production capacity, according to people familiar with the matter, as it tries to cash in on its crude reserves before the world transitions to cleaner energy.

 

Abu Dhabi National Oil Co., which pumps almost all the UAE’s oil, wants to be able to produce 5 million barrels a day by 2025, according to the people. That’s sooner than a previously disclosed aim of 2030.

 

The new target will be difficult to achieve and may increase the expense of a project that was already set to cost billions of dollars, the people said. Adnoc and the UAE government initially planned to bring the objective forward to 2027, before deciding on 2025, they said.

 

The UAE is pushing to sell more oil and natural gas while fossil fuel prices stay high. Oil soared to $120 barrel following Russia’s invasion of Ukraine. While it’s slumped since June to around $90 amid concerns about a global economic slowdown, it’s still far above the UAE’s production costs.

 

“As we embrace the energy transition and future-proof our business, we will continue to explore potential opportunities that can further unlock value, free up capital and enhance returns,” Adnoc said in a statement to Bloomberg. It did not say whether the 2030 target had changed.

 

The UAE’s Energy Ministry didn’t immediately respond to a request for comment.

 

State-owned Adnoc has asked international companies that are partners in its oilfields to raise their long-term production levels by 10% or more, according to the people. If the UAE’s successful in reaching the 2025 goal, it may try to boost its capacity further to 6 million barrels daily by the end of the decade, they said.

 

The UAE is the biggest oil producer in OPEC after Saudi Arabia and Iraq. It says it has the ability to produce slightly over 4 million barrels a day. But it’s restricted from reaching that level because of caps imposed by the cartel, which is trying to balance supply and demand.

 

Last month, the UAE’s daily crude output was just under 3.4 million barrels, according to data compiled by Bloomberg.

 

 

Green Goals

 

The Organization of Petroleum Exporting Countries and its allies, a 23-nation group led by the Saudis and Russia, are set to to maintain production limits for the rest of the year. Saudi Arabia has said it wants to extend them with a new deal that goes into 2023.

 

The UAE is increasing oil output capacity while also trying to neutralize carbon emissions by 2050, partly by investing in solar power and cleaner fuels such as hydrogen. The country says the easy accessibility of its oil reserves and technologies like carbon capture will make its crude is among the least polluting to pump out of the ground.

 

Like Saudi Arabia, the UAE has said oil demand will remain high for decades and major producers need to invest in exploration to avoid future supply shortages.

 

“As long as the world requires oil and gas to maintain energy security, it is critical that the least carbon-intensive barrels are made available,” Adnoc said in the statement.

 

Saudi Arabia and the UAE are among the few producers investing in greater output. Saudi Arabia is trying to raise its crude capacity to 13 million barrels a day from 12 million by 2027.

 

Energy Intelligence earlier reported that the UAE wanted to increase its capacity to 5 million barrels a day by 2027.

 


 

Source:
courtesy of BLOOMBERG

by Anthony Di Paola

 

If you have any stories or news that you would like to share with the global online community, please feel free to share it with us by contacting us directly at [email protected]

 

Related News


All Except Three Sabah Districts Record New Infections

 2022-09-30 15:00:05

Abortion: India Supreme Court Says Amended Law To Cover Single Women Too

 2022-09-30 13:39:20

Asian Equities Slide As Global Selloff Deepens: Markets Wrap

 2022-09-30 11:46:49