UAE Reaffirms Ambition for 5 Million bpd Oil Capacity by 2027
UAE's Ministry of Energy and Infrastructure has restated its unwavering aim to lift crude oil production capacity to five million barrels per day by 2027 amid shifting global energy demand. The clarification from Abu Dhabi follows remarks from the Energy Minister indicating potential capacity growth beyond that goal.
Aligned with its declared strategy, the nation insists the 5 million bpd target remains intact. Energy Minister Suhail Mohamed al‑Mazrouei, speaking at the Opec International Summit in Vienna, emphasised the UAE could scale up to six million bpd if global markets required—while making clear this figure is not an official target.
ADVERTISEMENT
Presently, UAE's production capacity stands at around 4.85 million bpd. The ministry's public affirmation underscores long‑established plans by Abu Dhabi National Oil Company to align with wider economic imperatives, including state‑led diversification and responsible growth.
On the sidelines in Vienna, Minister al‑Mazrouei pointed to oil inventories that have not surged, interpreting it as evidence of sustained market demand. He characterised the additional million barrels potential as a proactive choice, contingent on demand, rather than a binding pledge.
Opec+ has already increased the UAE's production quota this year, acknowledging its heavy investment in expanding capacity from 3 million to 4.85 million bpd. That quota adjustment reflects a bid to balance output with capacity and avoids penalising investment-led increases.
Global energy forecasts cited at the summit envision oil demand climbing by nearly 19 percent to 123 million bpd by 2050, driven by economic growth, urbanisation, and energy‑intensive industries such as artificial intelligence. Despite this, Opec has revised its short‑term forecast downward amid signs of slowing demand in China. Long‑term growth, however, is expected from regions including Asia, the Middle East and Africa.
ADNOC's accelerated expansion plan—bringing forward its 5 million bpd capacity objective from 2030 to 2027—was endorsed by the board under the leadership of His Highness Sheikh Mohamed bin Zayed Al Nahyan, supported by CEO Sultan Ahmed Al Jaber. The strategy forms part of a broader state-led drive combining energy security with economic diversification and sustainability.
While bolstering its crude oil output, ADNOC is also investing heavily in low‑carbon solutions. It allocates about US $5 billion annually to clean energy and has set a net‑zero emissions ambition for 2045. The company is integrating solar and nuclear power into offshore fields and is implementing carbon‑capture technologies in major developments.
ADNOC's low-carbon division recently acquired Germany's Covestro for US $16 billion, signalling a move to diversify into value‑added petrochemicals such as plastics, foams and ammonia. Its strategy foregrounds gas, chemicals and downstream operations alongside oil capacity growth, in anticipation of structural shifts in global energy use.
The UAE is poised to become the world's fourth-largest oil and liquids producer if the anticipated expansion is achieved, trailing only the United States, Saudi Arabia and Russia. At six million bpd capacity, it would surpass producers such as Canada, China, Iraq and Iran in scale.
However, uncertainties remain. The pace of global energy transition, the adoption of renewables, and potential peaking of oil demand—especially in China—pose risks to long-term strategy. But the UAE appears ready to hedge by maximizing flexibility: build for five million bpd, yet leave room to stretch if markets demand.
The public reaffirmation by the ministry serves both domestic and international audiences: showcasing earnest delivery of targets, reassuring investors on energy stability, and reinforcing the UAE's position as a stabilising force within Opec+.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
an hour ago
- The National
Trump announces new trade deal with Indonesia and cuts tariff
US President Donald Trump announced a trade deal with Indonesia on Tuesday, saying it agreed to pay a 19 per cent tariff on its exports and pledged to buy American goods. In a post on his Truth Social platform, Mr Trump said Indonesia would supply the US with critical minerals and planned to purchase Boeing aircraft and farming products. 'This Deal is a huge win for our automakers, tech companies, workers, farmers, ranchers and manufacturers,' Mr Trump wrote. The deal comes as Indonesia was facing a 32 per cent tariff on exports to the US, starting from August 1. US officials said the agreement ensured some tariffs remained on Indonesia, which has a population of about 280 million. 'The deal is significant,' one official told journalists on a call. 'It opens new markets for us, exports, reaffirms US digital leadership and it eliminates non-tariff barriers on US exports.' The official added that Indonesia would drop its tariffs 'to zero on over 99 per cent of its trade' with the US and would also eliminate all non-tariff barriers. The deal solidifies Mr Trump's strategy of using the threat of high tariff rates to extract concessions from trade partners under his America First approach. It may serve as a blueprint for agreements with other nations. He also announced a new 19 per cent tariff rate for goods from the Philippines, the country's President Ferdinand Marcos Jr visited the White House. 'It was a beautiful visit and we concluded our trade deal, whereby the Philippines is going open market with the United States, and zero tariffs. The Philippines will pay a 19 per cent tariff,' Mr Trump said. He called Mr Marcos a 'very good and tough negotiator". In April, Mr Trump announced a blanket 10 per cent tariff on almost all trading partners, while imposing higher levies on other countries with trade deficits. Mr Trump, who took office in January, had framed his so-called reciprocal tariff policy as a way to reduce deficits the US has with its trading partners. The US official said the agreement with Indonesia was worth at least $50 billion to the country in new market access, as well as purchases by Indonesian companies, including liquefied natural gas and farm commodities. The US had a goods trade deficit of $17.9 billion with the country last year, according to the Office of the US Trade Representative. That was a 5.4 per cent increase from 2023. While US exports to Indonesia increased by 3.7 per cent to $10.2 billion last year, imports rose by 4.8 per cent. Mr Trump's efforts to reformat US trade has also come with great uncertainty and course reversals. The President said he would quickly reach trade deals with nations, but only Indonesia, the UK and Vietnam have announced agreements. Mr Trump has secured a 'trade truce' with China, which has a separate deadline. Earlier this month, trade letters went out to more than a dozen countries, with threats of tariff rates ranging from 20 to 50 per cent.
The National
an hour ago
- The National
About $2 million in crypto funds intended for Hamas seized by US
About $2 million in cryptocurrency assets intended for Hamas has been seized by the US government, recently unsealed court forfeiture documents from the US Department of Justice have shown. According to court filings, the digital currency was held in Tether and Binance accounts connected through BuyCash, a 'Gaza-based money transfer business' allegedly involved in helping to finance Hamas. 'Terrorist organisations like Hamas and their affiliates rely on shadowy financial networks to fund their deadly operations,' US Attorney General Pam Bondi said. 'By seizing millions in cryptocurrency, the Justice Department is aggressively dismantling the financial infrastructure of terrorism and refusing to allow our digital currency platforms to become safe havens for terrorist financing.' The court filings said a man named Ahmed Alaqad, a partial owner of the BuyCash operation, is also suspected of supporting groups including ISIS and Al Qaeda. Unsealed court documents accuse him of 'materially supporting Hamas' after the group's attack on Israel in October 2023. According to the Department of Justice, the specific method of transferring funds through digital assets is likely to have resulted in Hamas receiving as much as $4 million previously. 'These types of money transfers are a classic money laundering technique, as they intend to disguise the nature, location, ownership and control of the funds being transferred,' the court filings said. Despite growing enthusiasm for crypto, there is still plenty of scepticism. Unlike fiat currencies, crypto mostly lacks an overall regulatory apparatus and is largely decentralised, making it appealing to groups with nefarious intentions. In May, a man in the US was sentenced to more than 30 years in prison after he was found guilty of converting $185,000 to cryptocurrency and transferring it to ISIS. In March, an investigation originating from the FBI's field office in New Mexico led to the seizure of $201,400 in cryptocurrency assets that was intended to finance Hamas.
The National
4 hours ago
- The National
Trump announces new tariff deal with Indonesia
US President Donald Trump announced a trade deal with Indonesia on Tuesday, saying Jakarta had agreed to pay a 19 per cent tariff rate on its exports and pledged to make US purchases. In a post on Truth Social, Mr Trump said Indonesia had agreed to supply the US with critical minerals, and planned to purchase Boeing aircraft and farming products. 'This Deal is a HUGE WIN for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers,' Mr Trump wrote. The deal comes as Indonesia was facing a 32 per cent tariff on its exports to the US starting August 1. US officials said the agreement ensures that some tariffs remain on Indonesia, the world's largest Muslim nation with a population of about 280 million people. 'The deal is significant,' one official told journalists on a call. 'It opens new markets for us, exports, reaffirms US digital leadership, and it eliminates non-tariff barriers on US exports.' The official added that Indonesia would drop its tariffs 'to zero on over 99 per cent of its trade' with the US and would also eliminate all non-tariff barriers. The deal solidifies Mr Trump's strategy of using the threat of high tariff rates to extract concessions from trade partners under his America First approach. It may serve as a blueprint for agreements with other nations. He also announced a new 19 per cent tariff rate for goods from the Philippines, after a visit by Philippine President Ferdinand Marcos Jr to the White House. 'It was a beautiful visit, and we concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs. The Philippines will pay a 19% Tariff,' Mr Trump said. He called Mr Marcos a 'very good and tough negotiator.' Mr Trump in April had announced a blanket 10 per cent tariff on almost all trading partners, while imposing even higher levies on other countries with trade deficits. Mr Trump, who took office in January, had framed his so-called reciprocal tariff policy as a means to reduce deficits the US has with its trading partners. The US official said the agreement is worth at least $50 billion to the US in new market access, as well as purchases the Indonesian companies will be making in goods, including liquefied natural gas and farm commodities. The US had a goods trade deficit of $17.9 billion with Indonesia last year, according to the Office of the US Trade Representative, a 5.4 per cent increase from 2023. While US exports to Indonesia increased 3.7 per cent to $10.2 billion last year, imports rose 4.8 per cent. Mr Trump's efforts to reformat US trade has also come with great uncertainty and course reversals. The US President has said he would swiftly reach trade deals with nations, but so far only Indonesia, the UK and Vietnam have announced agreements. Mr Trump has secured a 'trade truce' with China, which has a separate deadline.
