“Shifting global trends are creating a new energy landscape where new rules of engagement are required,” ADNOC Group CEO and UAE Minister of State Dr. Sultan Ahmed Al Jaber, said in a statement. “In this new energy era, we need more creative strategies and more flexible business models to capture growth.”
A surge in North American production made possible by technological revolutions contributed to a global crude oil glut that toppled prices from more than $100 a barrel in 2014 to under $50 today. That has forced OPEC and other exporters to band together to cut output in a bid to shrink global oil stockpiles.
Growing self-reliance in North America has also fueled a fierce battle over market share in Asia, the engine of growth for fossil fuels, a trend that ADNOC’s CEO acknowledged in his remarks on Monday.
Middle East producers are now devising strategies to lock in Asian market share, said Helima Croft, global head of commodity strategy at RBC Capital Markets.
However, ADNOC’s plans are not just about raising revenue, but achieving UAE’s economic vision for 2030, which aims to reduce oil’s dominant role in the economy, she said. That is another trend among Middle Eastern nations.
