H.E. Mohammad Sanusi Barkindo, secretary-general of OPEC, talks to TOGY about the role of member countries in reducing greenhouse gas emissions, projections for future demand growth and how the UAE has contributed to achieving the OPEC agenda. OPEC was formed in 1960 to co-ordinate policy among oil producing countries.
What are OPEC’s projections for future demand growth?
Over the past two years or so, the effective implementation of the historic Declaration of Cooperation literally rescued the oil industry from its worst-ever downturn. It helped bring more balance to the supply and demand equation and reintroduced a long-absent element of stability to the market. There is now far more optimism in our industry.
It is important to recognise that the production adjustments through the Declaration of Cooperation are not only focused on the short term; we need to appreciate that the short, medium and long terms are all interlinked. Stability today begets stability tomorrow. We fully believe that the evolving co-operation with participating non-OPEC countries can be a cornerstone of the global oil market in the years ahead, injecting confidence into it and providing a platform to enable the sustainable stability we all desire.
This stability will be vital for the huge investments required to meet future oil demand growth. In OPEC’s World Oil Outlook 2018, published in November last year, long-term oil demand was revised upward for the second consecutive year, with total demand now expected at almost 112 million barrels per day in 2040. It is also important to stress that there is no expectation for peak oil demand over the forecast period to 2040.
In terms of investments, in the period to 2040 the required global oil sector investment is estimated at USD 11 trillion.
Thus, it is vital and welcome that the UAE, and all OPEC member countries, continue to invest in their industries and in expanding capacity for the longer term.
How is the UAE becoming a key player in OPEC in terms of refocusing on downstream and petrochemicals?
The UAE has made huge strides in evolving its downstream business, including the Abu Dhabi National Oil Company (ADNOC) under the stewardship of Dr. Sultan Al Jaber. In May 2018, ADNOC announced an unprecedented expansion of its downstream portfolio to significantly enhance its assets, capabilities and product ranges, underpinned by a USD 45-billion investment programme.
This will help diversify its operations, establishing synergies and creating an integrated model between the upstream and downstream. These creative strategies and flexible business models will clearly aid the UAE in the years and decades ahead.
Many other OPEC member countries are looking to evolve and expand their downstream portfolios. There is evidently much we can all learn from the UAE’s developments in this regard.
How has the UAE aided in the realisation of the OPEC agenda?
The UAE has always played an important role within OPEC since Abu Dhabi, as it was then known, joined the organisation in 1967. In the subsequent years, the UAE has earned a stellar reputation as a conciliator, a bridge builder and a consensus broker in helping the organisation evolve its role and in realising its objectives.
This was also clearly evident in 2018, when H.E. Suhail Mohamed Al Mazrouei, minister of energy and industry of the UAE, assumed the role of president of the OPEC Conference for the year. His Excellency helped guide the organisation with immense skill, diplomatic tact and statesmanship. He steered OPEC and its non-OPEC partners through the second year of the Declaration of Cooperation and oversaw a further flowering of the relations.
The overwhelming consensus of all observers and his peers is that His Excellency was an extremely successful president of the OPEC Conference. All who work closely with him have been impressed by his professionalism, dedication and fundamental decency. His humility has made him an extremely pleasant colleague and a magnificent ambassador for his country, OPEC and indeed the oil industry.
Erwin Krueck, managing director of All Brokerage Solutions (ABS) in Angola, talks to The Energy Year about how the company… Read More
Russell Boodoo, regional business development manager at TOSL Engineering, talks to The Energy Year about the company’s role in supporting… Read More
Suresh Pillai, CEO of Mark Technologies, talks to The Energy Year about the company’s involvement in Jurassic gas production and… Read More
Narvin Salick, district manager of Gyrodata Trinidad, talks to The Energy Year about how the company has been impacted by… Read More
Billy Lacobie, CABGOC’s managing director for Southern Africa, talks to The Energy Year about recent strategic and operational developments in… Read More
Angola is working hard to increase its power generation capacity by boosting hydro and solar energy, as well as linking… Read More
This website uses cookies.