By: H.E. Dr Sultan Ahmed Al Jaber UAE Minister of State and ADNOC Group CEO
We live in an era of disruption on multiple levels. Emerging economic powers are reshaping geopolitics, traditional concepts of commerce are being challenged by new business models and society is being transformed by innovation. But amidst all the uncertainty, there is one invariable. The world’s increasing demand for energy.
Every forecast tells us the world’s demand for hydrocarbon-based energy and products will continue to increase over the next 20 years. By 2040, three times the amount of energy consumed in Europe today will be added to global demand. Most of this new demand will come from Asia, as GDP per capita in China and India is set to more than triple. Even in the most aggressive transition scenarios, oil and gas will provide the source for at least half of the world’s energy needs.
While population growth and the historic rise of the middle class will drive future demand for our products along the entire value chain, the energy landscape is being transformed as the world looks for more efficient and responsible ways to produce and use energy with fewer emissions.
If we are to seize the opportunities of the fourth industrial age, we must rethink how we can stay ahead of the demand curve by adapting and applying disruptive and innovative technologies; attracting and empowering talent; demonstrating environmental stewardship and leveraging partnerships. At ADNOC we call this mission Oil and Gas 4.0.
As we make progress with our creative 2030 growth strategy, we are leveraging the latest in artificial intelligence, data analytics, blockchain and machine learning to enable better and quicker, market-driven decisions. We have also created programmes to attract a digitally native, inclusive and diverse workforce, with a comprehensive talent management agenda to develop our future leaders. And, we have refreshed our partnership model, with new sets of investors who value long-term sustainable returns, as well as partnerships where best practices are shared, technology is leveraged, capital efficiency is maximised and market access enhanced.
And, we are doing all this without neglecting our environmental responsibilities. We produce among the least carbon intensive barrels in the world. We lead the industry with the lowest methane intensity. And we are investing in technology that captures significant amounts of carbon dioxide from industrial sources for injection into maturing reservoirs.
As energy ecosystems become more connected and intelligent, they will put a premium on our industry’s ability to adapt quickly to the environment in which we operate. At ADNOC, by embracing entirely new ways of thinking about our business and embedding innovation, advanced technology and a relentless focus on performance, into every aspect of our business, from our drilling operations to our trading business, we are building a road map to navigate the new energy landscape. In short, we are nurturing the national oil company of the future.
After over 150 years of success, the oil and gas industry is on the cusp of a new era, propelled by a series of macroeconomic, industry and technological trends.
ADIPEC, which this year features for the first time the Oil & Gas 4.0 Strategic Conference, provides the ideal platform to address these key issues and the exciting opportunities that lie ahead for our industry. By helping to shape the future energy ecosystem, that will be characterised by transformation, convergence, new entrants and innovative business strategies, ADIPEC will strengthen its role as a leading industry thought leadership event and reinforce Abu Dhabi and the UAE’s position at the heart of the global energy conversation.