ADIPEC 2014: Global Petro Industry Strives for Energy Efficiency

By Ekaterina Pokrovskaya - OGE Dubai Correspondent, January 26, 2015

channels for domestic energy supply, Al Kaabi stressed a growing role of LNG, new sour gases and other energy diversification initiatives for the U.A.E. and the Gulf countries.

“In the Gulf Cooperation Council countries we have the highest per capita energy consumption in the world, and in the U.A.E. we have taken a strategically important stance to diversify our energy supply. We are pursuing new sour gas fields developments in Bab and Shah, we have already started importing LNG and, hopefully, in 2018 we will have the Emirates LNG facility operational,” said Al Kaabi.

The Emirates LNG project, which is under construction now, is deemed to provide a new LNG regasification facility and LNG import terminal to supply the country with 1.2 billion cubic feet per day of natural gas that will be used primarily for power generation.

The U.A.E. also launched a peaceful nuclear program and the work is in progress to complete construction and gradually commission a nuclear power station in the Abu Dhabi Emirate. “By 2017 we shall have 25 percent of our power capacity requirement produced under a peaceful nuclear program,” added Al Kaabi.

Need for Broader Cooperation

Speaking about the issue of global energy security, Total’s Vice President Helle Kristoffersen emphasized the importance of maintaining cooperation between energy market players on the regional and broader level.

“We are proud to be part of the Dolphin Gas project that we have been a partner of since it started here years ago,” said Kristoffersen.

The Dolphin Gas project, which had been launched in 1999, aims to meet the UAE’s growing demand for natural gas by facilitating and expanding a steady flow of gas through a 364-kilometer, 3.2-billion-cubic-feet-per-day transit capacity pipeline from Qatar to the UAE. Historically, the Abu Dhabi Emirate has been rich in oil, but short of natural gas. in July 2007, the Dolphin pipeline carried first gas started across the Arabian Gulf.

As Kristoffersen pointed out, there has been a big debate in oil industry focusing on the US shale oil revolution. “The debate has very conflicting views on the U.S. shale oil production: its productivity, its sustainability, the technology around it and price reactivity,” she confirmed.

However, as she put it, we can all agree that OPEC’s long-term guarantee of supply and the United States' ongoing shale production are the key drivers of the future oil supply.

“Whatever your view is on the U.S. shale oil revolution, we cannot compare the short-term driven U.S. independent oil producers with the long-term oriented OPEC countries,” said Kristoffersen.

The combination of factors such as oil maturity, development of new shale oil formations around the world including the Middle East, and bringing in new technologies into the processes are also main contributors to driving the supply up.

According to Kristoffersen, by 2030 around 40 percent of global oil supply will come from OPEC, whereas North America, including the United States, Canada and Mexico, would account for only 15-20 percent of it.

She also shared Total’s view on the