Latest news with #SuhailAlMazrouei
Yahoo
16-07-2025
- Business
- Yahoo
The Oil Boom No One Wants to Talk About
Amid heated debates about how quickly and at what cost the world could reach net-zero emissions during constant geopolitical shifts and market turbulence, several oil-producing nations are doubling down on oil and their role in global crude supply. From the Middle East to Africa, South America, and even Europe, these are seven large or aspiring producers who are looking to boost their production in the coming years, with some also working on raising their oil production United Arab Emirates (UAE), one of OPEC's top producers, is currently raising its oil production capacity. ADNOC, the Abu Dhabi national oil company, aims to increase its production capacity to 5 million barrels per day (bpd) by 2027, up from 4 million bpd a few years ago. Currently, capacity is about 4.8 million bpd. Just last week, the UAE's Energy Minister, Suhail Al Mazrouei, hinted that capacity could rise beyond 5 million bpd after 2027, if needed. 'We can go to 6 million if the market requires,' Al Mazrouei told Reuters on the sidelines of the OPEC annual seminar in Vienna. The minister noted, however, that such an additional increase is not an official target, unlike the goal of 5 million bpd by 2027. The increase in production capacity allows the UAE to seek a higher output quota in the OPEC and OPEC+ agreements. For example, the UAE last year argued for and received a higher quota for 2025 and 2026 due to the ramp-up of its production major producer, Iraq, is also planning on increasing its production capacity. OPEC's second-largest producer seeks to boost capacity to more than 6 million bpd by 2029, and potentially produce 7 million bpd within the next five years. Iraq's current production is about 4 million bpd, as it is trying to compensate for previous overproduction in the OPEC+ agreements. Iraq is arguably the Gulf oil producer most dependent on oil revenues. Despite efforts to diversify its economy, it is doubling down on its most precious resource—enormous crude oil reserves estimated to be the world's fourth largest. Speaking of large, OPEC's biggest producer and the world's top crude oil exporter, Saudi Arabia, is also betting big on oil. Crude oil is the pillar of the Kingdom's revenues for the plan to diversify the economy and the key income for the budget. Last year, Saudi Aramco said it was ordered by the Kingdom's leadership to stop work on expanding its maximum sustainable capacity to 13 million bpd, instead keeping it at 12 million bpd. Still, the Saudis remain the most influential force in OPEC and OPEC+.Even as Saudi Arabia is tendering a massive 44 gigawatts (GW) capacity of renewable energy projects, it will maintain its oil-producing potential to ensure global energy security, officials from the Kingdom said in October. While the world is moving towards an energy transition, all forms of energy will be absolutely needed to ensure global energy security, said Saudi Arabia's Energy Minister, Prince Abdulaziz Bin Salman. 'We are committed to maintaining 12.3 million of crude capacity and we are proud of that,' the minister said. Saudi Aramco's President and CEO, Amin Nasser, last month said that 'Reality has revealed a transition plan that's been oversold and under-delivered for large parts of the world, especially Asia.' The world needs to accept that 'transition will not be smooth sailing or pain-free, especially in an increasingly volatile and uncertain world,' Nasser the other side of the world, and out of any OPEC+ deals, South America's biggest oil producer and one of the world's top ten, Brazil, is raising its output and exploring for more oil, even in sensitive areas offshore the Amazon. Brazil is auctioning off, quite successfully, offshore areas in the pre-salt layer and the Foz do Amazonas basin, which is part of the Equatorial Basin. Big Oil flocked to a recent tender held in June. Meanwhile, state-held energy giant Petrobras is spending billions of U.S. dollars to boost oil and gas exploration and production. Petrobras's investment plan for the five years to 2029 stands at $111 billion. Of this, $77 billion is earmarked for oil and gas exploration and production neighbor to the northeast, Guyana, is the world's newest petrostate. Oil production and exports, which began in 2019, have led to a booming economy, which has been showing double-digit growth over the past few years. Guyana already produces more than 660,000 bpd of crude from the Exxon-operated Stabroek block. Production capacity in Guyana is expected to top 1.7 million barrels per day, with gross production growing to 1.3 million barrels per day by 2030, Exxon says. Guyana is now the third-largest per-capita oil producer in the world, according to the U.S. supermajor. Surging oil production and exports helped Guyana's economy grow by 43.6% last year, marking the fifth straight year of double-digit GDP growth, which began just as Guyana became an oil West Africa, there's a wannabe oil producer which has been dubbed 'the new Guyana' amid expectations that Namibia's oil resources could be similar to the huge volumes found offshore Guyana. Despite the net-zero goals of many countries that would be potential buyers of Namibia's oil, the country wants to become an oil producer and possibly replicate Guyana's success. As one of the latest exploration hotspots in the world, Namibia is weighing further incentives and financing options to offer to international majors preparing plans for oil production offshore the African country. Oil and gas supermajors, including Shell, TotalEnergies, and Portugal-based energy firm Galp, have already made significant discoveries offshore Namibia. However, without infrastructure in place, costs are higher for production development plans. That's why Namibia wants to help the supermajors with further incentives to have them reach final investment decisions on oil production projects. In May, a senior official said that Namibia expects TotalEnergies and Norway's BW Energy to take final investment decisions on oil projects in late but not least, an honorable mention goes to Norway, Western Europe's biggest oil and gas producer, where electric vehicle (EV) sales have a market share of a whopping 97%. Despite a predominantly EV car fleet and a 97% renewable electricity production dominated by hydropower, Norway wants to sustain high oil and gas output at least until 2035, to help meet European demand. Unlike most governments in Europe, Norway's successive governments have for decades strongly supported the oil and gas industry, which yields huge income for the budget and for the sovereign wealth fund, the world's largest such fund with assets worth about $1.92 trillion as of this week. Norwegian energy major Equinor, partly owned by the state, continues to approve major capacity expansions and drills for new discoveries to 'maintain a high level of oil and gas production on the shelf towards 2035. Further exploration efforts and new discoveries would be crucial to slowing the expected decline in Norway's oil and gas production in the 2030s, the Norwegian authorities have said in recent years. By Tsvetana Paraskova for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The National
14-07-2025
- Automotive
- The National
UAE launches Dh750m Emirates Road expansion plan to cut congestion
The UAE on Monday launched a Dh750 million expansion plan for one of the country's busiest transport links in support of a nationwide drive to combat congestion. Emirates Road development project – which is being led by the Ministry of Energy and Infrastructure – will extend the number of lanes from three to five on a 25km stretch linking the Al Badee Interchange in Sharjah to Umm Al Quwain. The move will boost the capacity of the route to 9,000 vehicles per hour – an increase of 65 per cent. The scheme will also include a comprehensive upgrade of Interchange No 7 on Emirates Road, through the construction of six new bridges able to serve a combined 13,200 vehicles every hour. Work on the project is scheduled to begin in September and is expected to take two years to complete. The ministry said the road revamp is intended to reduce travel time by up to 45 per cent for commuters travelling from Ras Al Khaimah through Umm Al Quwain and Sharjah to Dubai, and vice versa. Suhail Al Mazrouei, Minister of Energy and Infrastructure, said the initiative is part of the ministry's efforts to develop practical and sustainable solutions to traffic congestion. 'This project represents a significant step towards realising the UAE's vision of establishing an integrated road network that meets the needs of the population and economic growth,' he said. 'Enhancing road efficiency and upgrading key interchanges will reduce daily travel times, improve community satisfaction, and support sustainable development by ensuring smooth traffic flow that enhances quality of life. It also reflects the country's commitment to delivering innovative solutions for improving transportation, reducing congestion-related emissions, and raising overall living standards.' Emirates Road – also known as the E611 – spans 110km and is a vital alternative route to Sheikh Zayed Road and Sheikh Mohammed bin Zayed Road for drivers in Ras Al Khaimah, Umm Al Quwain, Ajman and Sharjah. It allows motorists to travel to Abu Dhabi without having to go through central Dubai. Congestion-cutting plans Authorities across the Emirates are stepping up road-building efforts to help meet the demands of a rapidly growing population. Abu Dhabi's population crossed 4 million for the first time last month, while Dubai is fast approaching the same figure. A recent survey revealed that traffic jams continue to be the primary source of frustration for motorists. The research, based on the canvassing of 1,021 people in the country, found that 86 per cent of motorists 'typically experience traffic congestion '. Four fifths of respondents in the RoadSafety UAE and Al Wathba Insurance study said they have noticed heavier traffic congestion year on year. The UAE has introduced congestion charges as one means to ease traffic flow on the country's roads. Dubai introduced its road toll system, Salik, in 2007 and the system has since been extended and modified, notably through this year's introduction of dynamic pricing, with levies increasing at peak times. Abu Dhabi's Darb road toll system, which was introduced four and a half years ago, charges at peak hours in the morning and early evening. Many other measures could alleviate the UAE's traffic woes. Surveys last year by Dubai's Roads and Transport Authority (RTA) and the Dubai Government Human Resources Department found flexible working hours and more working from home could cut peak-hour traffic by as much as 30 per cent. The government is also encouraging residents to swap their cars for public transport. The Blue Line expansion of the Dubai Metro and ambitious plans for the Etihad Rail train network are central to the strategy.
The National
10-07-2025
- Business
- The National
UAE stays course on five million barrels production capacity plan by 2027
The UAE said on Thursday it was committed to staying the course on its plan to be able to produce five million barrels per day by 2027. The Ministry of Energy and Infrastructure re-established its commitment to the goal on Thursday, according to state news agency Wam. The ministry said there is no change to its production capacity target, it added. Suhail Al Mazrouei, Minister of Energy and Infrastructure, said the UAE will also be able to boost its oil production capacity to six million bpd after the 2027 target if markets require it, while at the Opec International Summit in Vienna. 'You can see that even with the increases for several months, we haven't seen a major build-up in inventories, which means the market needed those barrels,' Mr Al Mazrouei said in Vienna on Wednesday. Global oil demand is projected to expand by nearly 19 per cent to reach 123 million bpd by 2050, according to Opec's World Oil Outlook 2050 report released Thursday. Overall energy demand is expected to increase by 23 per cent and reach 378 million barrels of oil equivalent in the same time period, it added. Opec Secretary General Haitham Al Ghais said the increase will be driven by 'expanding economic growth, rising populations, increasing urbanisation, new energy-intensive industries like artificial intelligence, and the need to bring energy to the billions without it'. The US withdrawal from the Paris Climate Agreement is also expected to lead to higher demand for hydrocarbons. However, the oil producers group anticipates oil demand to fall in the next four years on the back of Chinese demand concerns. The report expects China's oil demand to increase by less than 2 million bpd between 2024 and 2050. Meanwhile, long-term demand in oil from countries not part of the Organisation for Economic Co-operation and Development is expected to increase by roughly 28 million bpd, while demand in OECD oil is projected to fall by 8.5 million bpd. Combined demand in India, other Asia, the Middle East and Africa is projected to rise by 22.4 million bpd between 2024 and 2050, the report said. India is expected to add 8.2 million bpd alone during this time frame. The report comes a week after Opec countries announced last week that it plans to increase production by 548,000 bpd for August after increasing output by 411,000 bpd in the previous three months. US President Donald Trump's shifting tariff policy and the Israel-Iran conflict have led to a period of volatility in oil markets this year even as crude prices began the year on strong footing. Brent, the benchmark for two thirds of the world's oil, peaked at more than $82 a barrel on January 15 before declining to roughly $69 a barrel on Thursday. Concerns of a global economic slowdown and sluggish growth in China – the world's largest importer of crude oil – have also weighed on prices.
Khaleej Times
10-07-2025
- Business
- Khaleej Times
Opec+ output hike finds strong market demand: Al Mazrouei
The oil market is absorbing additional crude supplies from Opec+ without creating excess inventories, underscoring robust global demand and justifying the recent accelerated output hikes, UAE Energy Minister Suhail Al Mazrouei said in Vienna. Speaking on the sidelines of the 9th Opec International Seminar, Al Mazrouei emphasised that the oil market fundamentals remain strong despite persistent speculation and price volatility. He pointed to the lack of stockbuilds in recent months — even after eight core Opec+ members began raising production targets — as evidence that the market needed the additional supply. 'You can see that even with the increases for several months we haven't seen a major buildup in inventories, which means the market needed those barrels,' he said. 'We need to look at the fundamentals and build the narrative around them, rather than just news and speculation.' Oil market analysts said the UAE's message is clear: supply increases are not a sign of surplus but a necessary response to resilient demand, underlining the need for a pragmatic approach to energy policy and production planning. Opec+ — which includes key producers such as Saudi Arabia, Russia, the UAE, Iraq, and Kuwait — recently announced a sharper-than-expected increase in crude output for August, raising the collective target by 548,000 barrels per day (bpd). This follows three months of more moderate hikes of 411,000 bpd each, as the group gradually unwinds a voluntary 2.2 million bpd cut agreed in April 2023. The decision to step up production came after sustained pressure from major consuming nations and market signals pointing to tighter supply in the second half of 2025. With demand for oil forecast to reach record levels, particularly from non-OECD Asia, analysts say the increased supply is not only timely but necessary to prevent price spikes. According to the International Energy Agency (IEA), global oil demand is expected to grow by 1.1 million bpd in 2025, driven by robust consumption in India and China and rising jet fuel usage as air travel rebounds. The IEA also reported that global commercial oil stocks remained below the five-year average through the second quarter, reinforcing the UAE minister's claim that the market is far from being oversupplied. Al Mazrouei dismissed concerns that the group's output hikes could lead to a supply glut later in the year. 'Opec+ assesses the market balance at each meeting,' he said. 'What we want is stability. That goal requires accepting whatever price the market accepts. Focusing only on prices is short-sighted.' He also raised the alarm about chronic underinvestment in oil and gas production, warning that the industry is not spending enough to ensure future energy security. 'We are living in an underinvestment environment. The longer this period lasts, the more pain we will face in the years to come,' he said. His remarks echoed similar concerns voiced by other oil executives at the seminar, where energy security, investment, and the role of hydrocarbons in a balanced energy transition topped the agenda. The Opec International Seminar, held at Vienna's Hofburg Palace, gathered over 1,000 ministers, CEOs, and policymakers for high-level discussions on global energy challenges.
Asharq Al-Awsat
10-07-2025
- Business
- Asharq Al-Awsat
Saudi Energy Minister: Two Billion People Worldwide Suffer from Energy Shortages
Saudi Energy Minister Prince Abdulaziz bin Salman has warned that the global energy transition must not come at the expense of economic growth and the cost of living. He highlighted that nearly two billion people around the world are currently facing energy shortages. Speaking at the opening session of the 9th OPEC International Seminar in Vienna, the minister stressed that the path toward energy transition must be realistic and practical. He emphasized that this shift should not be viewed as a threat to oil producers, but rather as an opportunity for technological innovation. Despite the growing use of renewable, nuclear, and hydrogen energy sources, Prince Abdulaziz maintained that oil and gas will remain essential and irreplaceable components of the global energy mix. He welcomed the fact that an increasing number of countries are adopting a more pragmatic view of the transition. Also speaking at the seminar, UAE Energy Minister Suhail Al Mazrouei said on Wednesday that oil markets have been able to absorb OPEC+ production increases without a rise in inventories, indicating that global demand still requires more crude. Al Mazrouei explained that the group is not concerned about oversupply and has seen no significant stockpile build-up, even after recent production hikes. OPEC+, which supplies around half of the world's oil, has been cutting production for several years to support market stability. However, the group recently began easing these cuts in response to rising global demand, particularly during the summer. OPEC+ began unwinding its 2.17 million barrel-per-day production cut in April, increasing output by 138,000 barrels per day. That was followed by monthly hikes of 411,000 barrels per day in May, June, and July. On Saturday, the group approved a further increase of 548,000 barrels per day for August. Al Mazrouei pointed out that the absence of a significant buildup in inventories despite these steady increases suggests that the market needed those barrels. He added that stability - not just price - should be the focus, stressing that short-term thinking based solely on price is insufficient. He noted that oil prices must remain attractive enough to draw in new investments, warning that countries with large oil reserves still are not investing at the necessary levels.
