By Katherine Yakunchenkova, General Manager, ALSS Group
The United Arab Emirates a member of the Organization of the Petroleum Exporting Countries (OPEC) and the Gas Exporting Countries Forum (GECF), has been staying an important actor in international oil & gas (O&G) markets. U.A.E. policymakers have explicitly stated that the Emirates, particularly Abu Dhabi, will undertake major strategic investments in midstream and downstream infrastructure to bring domestic producers in line with the U.A.E.’s 2021 national development goals.
Compared to global averages, U.A.E. holds considerable energy reserves. The U.A.E. is the world's seventh largest crude oil producer and the fourth largest producer of petroleum liquids in the Organization of the Petroleum Exporting Countries (OPEC). In addition, the U.A.E. holds the seventh largest natural gas reserves globally. The UAE has 98.63 billion barrels of proven reserves of oil and about 30 per cent of the country’s gross domestic product is directly based on oil and gas output hence oil and gas represent one of the core elements of the UAE national economy. As a mainstay to the economy, oil exports for about 25 percent of the UAE's gross domestic product. With the world’s seventh largest proven crude oil reserves, the UAE is a responsible producer and critical partner in global energy markets.
The petroleum industry in the United Arab Emirates (UAE) has been one of the world’s largest in terms of oil reserves, petroleum production and crude oil exports, and has since become the backbone of the country’s economy. For 2018, Middle East oil demand declined by 60 tb/d, while, in 2019, it is projected to increase by 60 tb/d. Oil demand together with price volatility will be affected by such important trends as regulations enforcement by OPEC members, US shale production, Venezuelan output issues, US sanctions against Iran, global trade risks, emerging markets currencies crises etc as geopolitics plays a vital role in the energy cycle.
Given the UAE’s determination to keep its place among those nations that are quick to realize the need of oil producers to adapt to changing circumstances and consumer demands, it can look forward to many more decades in which its oil and gas industries will provide a secure and dynamic base for economic growth.