The historic shift in energy use, from West to East, coupled with the rapid adoption of advanced technologies, are creating new challenges and growth for the global oil and gas industry.
Dr Sultan Al Jaber, UAE Minister of State and Group CEO of the Abu Dhabi National Oil Company (ADNOC) spoke at the panel session titled ‘Energy Challenges in the New Economies’. This was at the inaugural Bloomberg New Economy Forum (NEF) in Singapore. Adnoc is a founding partner.
Importantly, evolving energy demand would be driven by rapid growth of the middle class in Asia over the next few years.
Certainly, India’s middle class will shortly exceed 500 million. This is twice the population of the entire US. Moreover, China’s middle class is expected to grow to 750 million by 2025.
Unprecedented demand for energy
So, as the global economy continues to expand, the world is witnessing unprecedented demand for energy.
Hence, in the evolving energy landscape, the industry must find innovative ways to ensure a reliable, equitable and sustainable supply to new economy markets.
“The goals of the New Economy Forum are in line with the UAE’s 2071 strategy to prepare for the future and capture the opportunities that lie ahead. It also aligns with the UAE’s vision for building bridges, connecting global economies, and enabling sustainable prosperity.”
The minister pointed out that energy demand was increasing globally. But demand in Asia was at its peak growing over twice as fast as the rest of the world.
“Oil and gas will play a fundamental role as part of a diversified energy mix. And Adnoc is stepping up to ensure it continues to be a trusted and reliable supplier of oil and gas to meet the increasing demand from growing economies.”
New economies of the east
Abu Dhabi’s concession agreements with India and China demonstrated the shift taking place toward the New Economies of the East. India and China are two economic powerhouses that are redrawing the global energy map.
Also, Dr Al Jaber highlighted the rapid advance of digital technologies. These include artificial intelligence, big data, and blockchain. Potentially, they could transform the oil and gas industry’s ability to respond to this step change in global energy demand.
“The world around us is transforming at an unprecedented rate, and we are witnessing a revolution in digitization.”
Therefore, the UAE recognizes digital technology as a game changer. Importantly, it can positively shape societies, lift economies and transform the potential of all people.
Source: Trade Arabia News Service