In conversation with "Atlantic Council"Sultan Al Jaber: The UAE continues to consolidate its position and role as a reliable and responsible partner in the global energy sector.
Abu Dhabi, May 20 / WAM / His Excellency Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC and its group of companies, confirmed today that the UAE continues to consolidate its position and role as a reliable and responsible partner in the global energy sector, in line with the vision and directives of the wise leadership.
He explained that the basic pillars necessary to enhance the strength of the energy sector globally include enhancing investment in the sector’s infrastructure, and ensuring full commitment to freedom of navigation through the Strait of Hormuz.
In an interview with the Atlantic Council published in the “AC Front Page” podcast moderated by Helima Croft, Executive Director and Global Head of Commodity Strategy and Middle East and North Africa Research at RBC Capital Markets, His Excellency called for investment in the various stages of the value chain to enhance the global energy economy.
He pointed out that ADNOC is working to implement world-class projects, including accelerating the construction of a second pipeline to double export capacity through the Port of Fujairah and bypassing the Strait of Hormuz.
He added: “A large percentage of global energy resources still passes through a very small number of critical strategic crossings. Therefore, the UAE took a decision more than a decade ago to invest in infrastructure that goes beyond the Strait of Hormuz. In 2025, ADNOC began implementing the second pipeline project, of which 50% has been completed so far, and we are redoubling efforts to accelerate its full completion in 2027.”
His Excellency stressed ADNOC’s commitment to its five-year capital investment program worth 551 billion dirhams ($150 billion), with the aim of improving its operations, driving growth and enhancing its contribution to meeting global energy demand.
He said: “The energy sector is facing a severe lack of investment, as the volume of current investments in the field of exploration, development and production reaches $400 billion annually, which is insufficient to cover the natural decline in production rates. The total spare production capacity is about 3 million barrels per day, while it should be closer to 5 million. In just two months, the world has withdrawn about 250 million barrels from reserves, and the remaining amount is sufficient to cover needs for a period ranging between 30 and 35 days. Therefore, we need to double this number at the very least.”
He explained that the current conflict highlighted the fragility of supply chains for the oil and gas sector, as well as for the vital chemicals, minerals and fertilizers that drive the global economy.
He said, “The repercussions of the closure of the Strait of Hormuz are affecting oil supplies, and their impact extends to include liquefied natural gas, jet fuel, fertilisers, aluminium, helium, vital minerals, plastics, consumer goods, and various areas of shipping. The entire global economy’s supply chains have been affected, starting from food to aviation, and even phone chips. Fuel prices have risen by 30%, fertilizers by 50%, and airline tickets by 25%. In light of these developments, all sectors bear the cost.” From farms to factories and families, the most vulnerable groups are exposed to the most severe consequences, and it is also a striking fact that just 80 days into this conflict, up to 80 countries have implemented emergency response measures to support their economies.”
Regarding the impact of the conflict on oil markets, His Excellency stressed ADNOC’s ability to increase its oil production within weeks, and explained that the return of flows through the Strait of Hormuz after the end of the conflict to 80 percent of the level they were previously will take about four months, and that their return to their full levels may be in the first or second quarter of 2027.
He renewed his call on Iran to immediately stop disrupting trade through the Strait of Hormuz, and called on global leaders to intensify their efforts to protect freedom of navigation in this vital waterway.
He added that closing the strait sets a dangerous precedent whose effects are not limited to the economy. A country holding the most important waterway in the world hostage destroys the principle of freedom of navigation, and if we do not defend this principle today, we will spend the next decade trying to deal with the repercussions.
His Excellency explained that the wise leadership in the UAE directed to accelerate the implementation of plans aimed at providing low-cost energy supplies and emissions to customers around the world despite the current circumstances, through the sovereign and strategic decision to exit OPEC in late last April, which was taken with a clear vision, conviction and confidence, stressing that the country seeks to enhance its flexibility in the areas of investment, growth and expansion, and building partnerships, in a way that contributes to creating sustainable value in the long term.
He added that with oil demand expected to continue at levels exceeding 100 million barrels per day until the 2040s, the world needs more oil that is lower in cost and carbon emissions produced by the UAE. We now have the flexibility necessary to supply our customers around the world with larger quantities of crude oil. At the same time, the country needs more energy supplies to implement its goals of growth and progress, especially with the increasing strategic importance of natural gas in generating electricity, supporting artificial intelligence infrastructure, manufacturing, and promoting economic growth.
He explained that the UAE’s decision to leave OPEC is not directed against anyone, stressing that the country will continue its role as a reliable and responsible partner in the energy sector and will continue to cooperate effectively with all friends and partners.
His Excellency highlighted ADNOC’s efforts to diversify its international investments outside the energy sector, including the areas of artificial intelligence infrastructure, data centers, semiconductors, advanced manufacturing and vital minerals.
He stressed that the established relationship between the UAE and the United States of America constitutes a fundamental pillar in the company’s plans for international growth, and that the UAE is the largest market for American exports in the Middle East for the seventeenth year in a row.
He said that the strategic partnership between the two friendly countries extends to include the sectors of technology, investment, industry, energy, defense, and others. The UAE has invested more than 3.67 trillion dirhams ($1 trillion) in the United States, and the volume of these investments is expected to increase over the next decade. The value of the state’s investments in the energy sector through the companies ADNOC, “More than just two trading partners, they are investing together in building the economy of the next century, and it is a solid partnership based on mutual trust that goes beyond the scope of traditional transactions.”
His Excellency stressed that ADNOC’s local and international investment agenda is supported by the company’s strong revenues and experience spanning several decades of implementing thoughtful and diversified investments within the fields of infrastructure.
He said: “ADNOC maintained the continuity of the flow of supplies and worked closely with its customers on a shipment-by-shipment basis, with the aim of contributing to meeting demand as much as possible. It redirected its shipments across the eastern coast of the country, and also benefited from its global trade network to secure additional supplies to its customers throughout Asia. ADNOC is also working with its partners, especially Asian ones, to expand and refill strategic storage facilities to enhance its flexibility in the face of future crises, and continues to develop its commercial strategy to become more capable.” “We are committed to adapting to changes, ensuring that our products remain competitive, reliable, and attractive to customers around the world. The results of our business are the best evidence of our adaptation to the current circumstances, as all of ADNOC’s listed companies have achieved strong returns, and the performance of many of them exceeded market expectations.”
His Excellency added: “The recent experiences confirmed the strength and determination of the UAE, and showed its true nature and the effectiveness of its strategic plans, as members of society felt safe, work continued regularly in the country, energy supplies continued, airports remained open, and business sectors continued their usual activity. The country also maintained high levels of investor confidence, which is embodied today in the growing interest and appreciation on their part for the UAE, based on its efficiency in responding to these developments and their confidence in its infrastructure. and its systems.”
His Excellency explained that recent events revealed a number of lessons learned about the strength and solidity of the energy sector, including the necessity of increasing investments, which, despite their cost, become of inestimable value when needed, as well as the necessity of integrating artificial intelligence into the core of operational processes because of the speed it provides in analyzing data and supporting decision-making, which represents the difference between business continuity and disruption during crises, and that the concept of energy security is no longer limited to production, but also includes the diversity of supply paths, and the availability of storage capabilities and supportive backup alternatives.
He added that flexibility is not achieved by chance, but it is a comprehensive strategic proactive action, which is what is built and invested in before events occur. It is also the integrated defense systems that are developed and invested in, and the economic diversification that is adopted and committed to… Resilience is based on partnerships that have been consolidated over many years and are based on trust, common convictions, and credibility, and standing by partners and friends when they need you. He explained that the social values that have been established over more than fifty years since the founding of the UAE have confirmed that everyone… It contributes to building the nation to which it belongs, and that this experience has confirmed that the UAE represents something greater than an urban renaissance, oil reserves, or sovereign wealth funds. The UAE is a role model, a towering symbol, and a model that has proven its flexibility, strength, and solidity. He stressed that the UAE builds, adapts, and always moves forward. Therefore, even in times of challenges, people continue to invest in the UAE, work with the UAE, and place their trust in the UAE. The world now more clearly understands the importance of the model it represents. Emirates.
He said that the UAE was targeted by more than 3,000 missiles and drones, and was subjected to brutal and unjustified attacks because of its development model based on coexistence, tolerance, economic openness, and building bridges of communication and cooperation.
In response to a question about the potential of artificial intelligence, His Excellency pointed out that the world’s estimate of the volume of energy supplies required by the great development of artificial intelligence solutions and tools is still less than necessary, and that there is a need to increase investments in this field.
He expected the global demand for electricity from data centers to double by the end of the current decade, reaching 1,000 terawatt-hours. This growth is further accelerating in the United States, with the share of data centers in total electricity demand expected to rise from 5% currently to 15% by 2030. Therefore, the discussion about the development of artificial intelligence is related to energy, infrastructure, capital, and competitiveness, and not only to technology.
He added that the race to achieve leadership in the field of artificial intelligence is a race for “electricity electrons,” and countries that are able to provide reliable, scalable energy supplies at an appropriate cost will have a great strategic advantage. Therefore, we always stress the importance of providing reliable and stable sources of base load energy.
His Excellency extended an open invitation to the leaders of the energy sector to participate in the next edition of the “ENACT” (Activating Action) Council and to attend the activities of the “ADIPEC 2026” exhibition and conference during next November in Abu Dhabi, with the aim of contributing to unifying the efforts of the global energy economy system around enhancing business resilience.
The dialogue can be viewed on the Atlantic Council website
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