Global consensus is urgently needed to address climate priorities and energy security challenges, as a lack of investment in hydrocarbons will worsen the energy crisis and wipe out spare oil production capacity once economies rebound further.
“A fear factor is still causing the critical oil and gas investments in large, long-term projects to shrink. And this situation is not being helped by overly short-term demand factors dominating the debate,” Aramco chief executive, Amin Nasser, said at the Schlumberger Digital Forum.
Even with strong economic headwinds, global oil demand is still fairly healthy today, he said, and when the global economy recovers, it is expected to rebound further, “eliminating the little spare oil production capacity out there”.
“And by the time the world wakes up to these blind spots, it may be too late to change course. That is why I am seriously concerned,” Mr Nasser said.
Policymakers need to recognise that supplies of ample and affordable conventional energy are still required over the long term. And with that in mind, they should pursue further reductions in the carbon footprint of conventional energy and greater efficiency of energy use, he said.
Saudi Arabia, Opec’s top oil producer and the world’s biggest crude exporter, and the UAE have repeatedly highlighted the need to boost investments in hydrocarbons and develop spare capacities to tackle looming energy shortages and price swings in oil markets.
Spending in the oil and gas industry took a hit during the Covid-19 pandemic and the push by governments to transition to cleaner forms of energy.
Total investment in the upstream part of the oil and gas sector fell 23 per cent below pre-coronavirus levels to $341 billion in 2021, according to the International Energy Forum and IHS Markit.
The oil and gas sector needs $600bn worth of investments until 2030 to keep pace with rising demand, Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc, said last year.
Low investment in the energy sector is also detrimental to energy transition and oil producers have also been pushing the West to draw realistic plans about how quickly renewable form of energy can replace fossil fuels.
A fear factor is still causing the critical oil and gas investments in large, long-term projects to shrink. And this situation is not being helped by overly short-term demand factors dominating the debate
Amin Nasser,
chief executive, Aramco
Oil and gas will account for more than 50 per cent of the global energy mix by 2045 and will continue to play an important role even as the world pivots towards cleaner forms of energy, according to Opec.
“When you shame oil and gas investors, dismantle oil and coal-fired power plants, fail to diversify energy supplies (especially gas), oppose LNG [liquefied natural gas] receiving terminals, and reject nuclear power, your transition plan had better be right,” Mr Nasser said.
“Instead, as this crisis has shown, the plan was just a chain of sandcastles that waves of reality have washed away. And billions around the world now face the energy access and cost of living consequences that are likely to be severe and prolonged.”
Oil prices have remained volatile this year, climbing to a notch under $140 per barrel in March after Russia’s military assault in Ukraine. It has given up some gains to trade above $93 per barrel level, still nearly 20 per cent up on the beginning of the year.
Earlier this month, Opec kept its global oil demand forecast unchanged for this year despite headwinds from rising inflation, increasing interest rates and the continuing war in Ukraine.
World oil demand growth remained pegged at “a healthy” 3.1 million barrels per day rise in 2022, including the recent additional oil demand growth due to fuel-switching in power generation. Opec estimated global oil consumption in 2022 to average 100 million bpd.
“As the pain of the energy crisis sadly intensifies, people around the world are desperate for help,” Mr Nasser said.
“In my view, the best help that policymakers and every stakeholder can offer is to unite the world around a much more credible new transition plan.”
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
more from Janine di Giovanni
Profile of Foodics
Founders: Ahmad AlZaini and Mosab AlOthmani
Based: Riyadh
Sector: Software
Employees: 150
Amount raised: $8m through seed and Series A - Series B raise ongoing
Funders: Raed Advanced Investment Co, Al-Riyadh Al Walid Investment Co, 500 Falcons, SWM Investment, AlShoaibah SPV, Faith Capital, Technology Investments Co, Savour Holding, Future Resources, Derayah Custody Co.
Other key dates
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Finals draw: December 2
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Finals (including semi-finals and third-placed game): June 5–9, 2019
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Euro 2020 play-off draw: November 22, 2019
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Euro 2020 play-offs: March 26–31, 2020
Killing of Qassem Suleimani
If you go
The flights
Etihad (etihad.com) flies from Abu Dhabi to Luang Prabang via Bangkok, with a return flight from Chiang Rai via Bangkok for about Dh3,000, including taxes. Emirates and Thai Airways cover the same route, also via Bangkok in both directions, from about Dh2,700.
The cruise
The Gypsy by Mekong Kingdoms has two cruising options: a three-night, four-day trip upstream cruise or a two-night, three-day downstream journey, from US$5,940 (Dh21,814), including meals, selected drinks, excursions and transfers.
The hotels
Accommodation is available in Luang Prabang at the Avani, from $290 (Dh1,065) per night, and at Anantara Golden Triangle Elephant Camp and Resort from $1,080 (Dh3,967) per night, including meals, an activity and transfers.
Her most famous song
Aghadan Alqak (Would I Ever Find You Again)?
Would I ever find you again
You, the heaven of my love, my yearning and madness;
You, the kiss to my soul, my cheer and
sadness?
Would your lights ever break the night of my eyes again?
Would I ever find you again?
This world is volume and you're the notion,
This world is night and you're the lifetime,
This world is eyes and you're the vision,
This world is sky and you're the moon time,
Have mercy on the heart that belongs to you.
Lyrics: Al Hadi Adam; Composer: Mohammed Abdel Wahab
More on animal trafficking
Abu Dhabi GP schedule
Friday: First practice - 1pm; Second practice - 5pm
Saturday: Final practice - 2pm; Qualifying - 5pm
Sunday: Etihad Airways Abu Dhabi Grand Prix (55 laps) - 5.10pm
Dubai Rugby Sevens
November 30-December 2, at The Sevens, Dubai
Gulf Under 19
Pool A – Abu Dhabi Harlequins, Jumeirah College Tigers, Dubai English Speaking School 1, Gems World Academy
Pool B – British School Al Khubairat, Bahrain Colts, Jumeirah College Lions, Dubai English Speaking School 2
Pool C - Dubai College A, Dubai Sharks, Jumeirah English Speaking School, Al Yasmina
Pool D – Dubai Exiles, Dubai Hurricanes, Al Ain Amblers, Deira International School
TICKETS
Tickets start at Dh100 for adults, while children can enter free on the opening day. For more information, visit www.mubadalawtc.com.
Racecard
%3Cp%3E6pm%3A%20The%20Madjani%20Stakes%20%E2%80%93%20Group%202%20(PA)%20Dh97%2C500%20(Dirt)%201%2C900m%3Cbr%3E6.35pm%3A%20Graduate%20Stakes%20%E2%80%93%20Conditions%20(TB)%20Dh100%2C000%20(D)%201%2C400m%3Cbr%3E7.10pm%3A%20Longines%20Dolcevita%20Collection%20%E2%80%93%20Maiden%20(TB)%20Dh82%2C500%20(D)%201%2C400m%3Cbr%3E7.45pm%3A%20Longines%20Legend%20Driver%20Collection%20%E2%80%93%20Maiden%20(TB)%20Dh82%2C500%20(D)%201%2C600m%3Cbr%3E8.20pm%3A%20Longines%20Master%20Collection%20%E2%80%93%20Handicap%20(TB)%20Dh105%2C000%20(D)%201%2C200m%3Cbr%3E8.55pm%3A%20Longines%20Record%20Collection%20%E2%80%93%20Handicap%20(TB)%20Dh87%2C500%20(D)%202%2C200m%3Cbr%3E9.30pm%3A%20Longines%20Spirit%20Collection%20%E2%80%93%20Handicap%20(TB)%20Dh87%2C500%20(D)%201%2C600m%3C%2Fp%3E%0A
FIGHT CARD
Bantamweight Hamza Bougamza (MAR) v Jalal Al Daaja (JOR)
Catchweight 67kg Mohamed El Mesbahi (MAR) v Fouad Mesdari (ALG)
Lighweight Abdullah Mohammed Ali (UAE) v Abdelhak Amhidra (MAR)
Catchweight 73kg Mostafa Ibrahim Radi (PAL) v Yazid Chouchane (ALG)
Middleweight Yousri Belgaroui (TUN) v Badreddine Diani (MAR)
Catchweight 78kg Rashed Dawood (UAE) v Adnan Bushashy (ALG)
Middleweight Sallaheddine Dekhissi (MAR) v Abdel Emam (EGY)
Catchweight 65kg Rachid Hazoume (MAR) v Yanis Ghemmouri (ALG)
Lighweight Mohammed Yahya (UAE) v Azouz Anwar (EGY)
Catchweight 79kg Omar Hussein (PAL) v Souhil Tahiri (ALG)
Middleweight Tarek Suleiman (SYR) v Laid Zerhouni (ALG)
Know your Camel lingo
The bairaq is a competition for the best herd of 50 camels, named for the banner its winner takes home
Namoos - a word of congratulations reserved for falconry competitions, camel races and camel pageants. It best translates as 'the pride of victory' - and for competitors, it is priceless
Asayel camels - sleek, short-haired hound-like racers
Majahim - chocolate-brown camels that can grow to weigh two tonnes. They were only valued for milk until camel pageantry took off in the 1990s
Millions Street - the thoroughfare where camels are led and where white 4x4s throng throughout the festival
