UAE Minister: Under-investing in oil and gas harming global energy demand

Under-investing in the oil and gas sector is leading to more demand than the current supply can meet, claims Suhail Mohamed Al Mazrouei, the UAE Minister of Energy and Infrastructure.

The minister points to this disparity during an interview with 103.8 Dubai Eye’s Business Breakfast with a hopeful outlook.

Al Mazrouei affirmed that all indications point to an oil supply surplus in the first quarter of 2022 and Organisation of the Petroleum Exporting Countries Plus (OPEC+) and its allies would stick with plans to raise oil output by 400,000 barrels per day during a statement at the Abu Dhabi International Petroleum Exhibition Conference (ADIPEC) on Monday.

However, only a minority of the countries in the region are actively investing in oil and gas, says the minister, which is insufficient to handle the global demand.

Additionally, prospective investors are being "scared away" by certain groups who believe that there would not be future supply and purchase agreements as the world transitions to more sustainable sources of energy.

The UAE was recently announced as the candidate of choice to host the United Nations Climate Change Conference, COP 28, in 2023.

As a historically carbon-reliant country with bold, new plans to become more sustainable, the importance of hosting COP28 in the UAE was queried to the minister.

Al Mazrouei says that UAE and the wider region will focus on two aspects when energy transition is concerned.

Firstly, the UAE will be a "reliable supplier for hydrocarbon during the transition" and secondly "be a leading partner when it comes to commitment to net-zero".

When asked about the specifics of the UAE's commitment to the sustainability route, low carbon intensity barrels were highlighted.

In a public comment made at ADIPEC on Monday, the minister highlighted how the UAE has been reducing carbon footprint by adopting Artificial Intelligence and sustainable technologies such as carbon capture.