The United Arab Emirates is hosting its annual oil-and-gas summit to discuss plans to increase energy output amidst volatile global prices and uncertainties in world politics. Despite last year’s pledge to move away from fossil fuels at the United Nations COP28 climate talks, the UAE still plans to increase its oil production capacity to 5 million barrels a day while pursuing cleaner energies at home. Officials have avoided questions about the U.S. election and maintain close ties to Russia despite Moscow’s war on Ukraine.
Crude oil prices have been low this year, with benchmark Brent crude trading around $74 a barrel. Concerns over growing regional conflicts in the Middle East have faded, leading to a drop in prices. The slowing economic growth in China and ample supply in the market are also contributing to the price decrease. In his speech at the summit, Sultan al-Jaber highlighted artificial intelligence as a future technology with a high demand for electricity and emphasized the need for a variety of energy sources to meet the challenge.
Scientists are calling for a drastic reduction in global emissions to limit global warming, but OPEC Secretary-General Haitham al-Ghais emphasized that the Paris Agreement focuses on the reduction of emissions rather than phasing out fossil fuels. The UAE’s minister of energy and infrastructure stressed the importance of investing in oil and gas resources to meet future demand. India’s minister of petroleum and natural gas also emphasized the need for traditional energy sources while transitioning to green energy. Politics were a topic of discussion at the summit, with attendees speculating about the impact of the U.S. election on the energy transition.
The UAE’s close ties to Russia were evident at the summit, with Russian translation available and Russia’s largest non-state oil firm, Lukoil, being a main partner. The ongoing conflicts in the Middle East remain a top concern for energy companies, with worries about the safety and security of people and energy flows. Despite the uncertainties in the global energy market, the summit highlighted the importance of investing in a variety of energy sources to meet future demand while addressing climate change goals. The UAE’s commitment to partnership, dialogue, and peace in the energy sector indicates a continued focus on balancing traditional and green energy strategies.
