Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and CEO of the Abu Dhabi National Oil Company (ADNOC), announced at the ADIPEC 2026 conference held in Abu Dhabi that nearly one billion barrels of oil have been drawn from global reserves since the disruptions in the Strait of Hormuz. At this conference, attended by Sheikh Mansour bin Zayed Al Nahyan, Vice President and Head of the UAE Presidential Court, he emphasized the need for a fundamental rethink of how to create, protect, and deliver secure energy.
Current Energy Market Situation
Dr. Al Jaber stated that in some markets, diesel reserves are at their lowest level in 35 years, while others are facing a shortage of 600 billion cubic feet in LNG supply. He said: "Simply put, the world has reduced its reserves. Supply is only half the story; the other half is delivery. Before the disruptions, logistics costs were less than 5% of the cost of each barrel, while today that figure is over 30%."
Read more: Reduction of Electricity Production Capacity in Kazakhstan and Kyrgyzstan Ahead of Winter
Dr. Al Jaber's Recommendations for Improving the Energy System
Dr. Al Jaber proposed five actions to mitigate the impact of future disruptions in the energy sector:
- Access Provision: There is a need to expand strategic reserves and refining capacities close to consumer markets.
- Market Pathways: Infrastructure must be built before the need arises and enabled with advanced logistics.
- Operational Intelligence: Move towards smart energy systems that can predict risks and optimize performance.
- Trust-Based Investment: Policies should build trust, and financing and insurance should facilitate transactions.
- Importance of Human Resources: Every barrel that reaches its destination is the result of the individual effort that made it possible.
He also mentioned ADNOC's new collaboration with OpenAI and G42 aimed at utilizing advanced artificial intelligence to make energy systems smarter, safer, and more efficient.
The UAE's Role in Energy Market Stability
Dr. Al Jaber further emphasized the UAE's leading role in creating stability in energy markets, stating: "The UAE has always sought dialogue, active diplomacy, and political solutions to bring stability to the markets." He also thanked the UAE Armed Forces and ADNOC frontline staff for their exceptional services during critical times.
In conclusion, Dr. Al Jaber, referencing Sheikh Mohammed bin Zayed Al Nahyan's views on unity and belonging, highlighted the importance of these values in strengthening the country's resilience, stating: "The UAE model, tested under pressure, proves that investments and talents remain during crises, and the economy continues to move forward."
Read more: Kermanshah's Share of Iran's Exports to Iraq Reaches 41% · Baker Hughes Reports Strong Electricity Demand and Positive Outlook for LNG
