Oil demand to hit 105 million bpd by 2030
Experts said that the petrochemicals sector will continue to grow at a healthy pace through and beyond 2050
The oil and gas industry should unite in driving post-Covid-19 recovery, a top minister said during the opening day of the Abu Dhabi International Petroleum Exhibition Conference.
Dr Sultan Ahmed Al Jaber, the UAE Minister of Industry and Advanced Technology and Group CEO of the Abu Dhabi National Oil Company, noted that global oil demand will hit 105 million barrels per day by 2030.
"We know the world will still need oil and gas when all of this is done. Even at the height of the lockdowns of March and April the world still consumed 75 million barrels of oil per day. In fact, by our estimates, oil demand fell below 90 million barrels of oil per day for only 12 weeks. So, we know the world still needs oil and gas. That is a fact," Dr Al Jaber said in a virtual conference.
He stressed that the months ahead will be "challenging" and that oil demand may fluctuate but the "long-term fundamentals of the industry remain intact".
"We have the people, the talent and capabilities to be resilient. We know however hard things are right now, we will stand once more and stand stronger than before. We expect that oil demand will grow to over 105 million barrels per day by 2030, and continue to supply over half the world's energy needs for many decades to come. At the same time, the petrochemicals sector will continue to grow at a healthy pace through and beyond 2050, in line with a steadily expanding global middle class. These are long-term positive trends and they highlight the central role that our industry can and should play in a post-Covid-19 recovery," he said.
Dr Al Jaber noted that in the face of challenges there are also opportunities to be more agile and reduce costs. He recollected the process started four years back at Adnoc to drive down costs and unlock value across its portfolio and said he sees an opportunity to accelerate the progress by leveraging technology.
"For example, take the way we have doubled down on embedding the latest digital technologies throughout our operations. We have saved over $1 billion in the last four years by leveraging big data through our Panorama command centre. We have captured an additional $2 billion by adopting digital drilling. Together with the artificial intelligence leaders G42, we've formed AIQ - a company specially formed to develop efficient AI solutions for our industry," he highlighted.
He added that Adnoc has been able to use the UAE and Abu Dhabi's status as a trusted, business-friendly environment to complete several landmark transactions. "We inked a $20-billion pipeline deal and unlocked $5.5 billion in value from our real estate assets. Our industry has brighter days ahead and there is even more value to be captured."
He also noted that Adnoc's move into trading will capture more value from every barrel it produces. He added Adnoc's downstream expansion presents great opportunities for partners, will enhance the UAE's industrial base and increase in-country value. He pointed out that there is an opportunity for the oil and gas industry to mitigate climate change and ensure the industry's resilience by increasing carbon efficiency.
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