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    Emirates want “carbon-efficient” oil and gas

Summary

Abu Dhabi hosted an energy summit as the COP26 summit drew to a close during the weekend.

by: Daniel Graeber

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Emirates want “carbon-efficient” oil and gas

The CEO of the Abu Dhabi National Oil Company said November 14 continued investments in fossil fuels was still needed during the energy transition.

Abu Dhabi hosted more than 30 CEOs of global energy companies during a weekend that coincided with the conclusion of the COP26 summit in Glasgow. Some 200 delegates at COP26 agreed to pursue efforts to keep global warming below a 1.5°C target and called for first-ever actions to “phase down” fossil fuels.

Sultan Ahmed al-Jaber, the CEO of the Abu Dhabi company, said continued investments in fossil fuels were needed, however, as the energy transition accelerates.

“The current supply crunch has exposed the vulnerability of the global energy system and highlighted the need for continued investments in carbon-efficient oil and gas while expanding renewable energy power as we work towards a lower carbon future,” he said.

Crude oil and natural gas prices continue to hover at multi-year highs despite recent moves lower as demand outweighs supply. Coupled with inflation, higher commodity prices could hinder further economic growth.

US president Joe Biden in particular has pressured members of the Organisation of the Petroleum Exporting Countries (OPEC) and looked at tapping into the nation’s own strategic reserves to help lower prices. Saudi Arabia, the de facto leader of OPEC, however, has also said it was a lack of investments that were to blame for the rise in commodity prices.

Even still, major oil and gas producers are pursuing low-carbon investment opportunities. The Emirati government during the first week of the COP26 conference unveiled its "hydrogen leadership roadmap," under which it will target a 25% share of the global hydrogen market.