UAE Accelerates Investment in Energy Resilience Amid Conflict, Emphasizes Freedom of Navigation: Sultan Al Jaber
Abu Dhabi: Dr. Sultan bin Ahmed Al Jaber, the Minister of Industry and Advanced Technology and Managing Director and Group CEO of the Abu Dhabi National Oil Company (ADNOC), has announced that the UAE is intensifying its efforts to provide low-cost, low-carbon energy globally, despite ongoing regional conflicts. He emphasized the urgent need for renewed infrastructure investment and a steadfast commitment to maintaining freedom of navigation through the Strait of Hormuz to bolster global energy resilience.
Investment in Energy Infrastructure
Dr. Al Jaber highlighted the necessity for comprehensive investment across the energy value chain to strengthen the global energy economy. ADNOC is advancing a new phase of large-scale project execution, which includes accelerating the construction of a second pipeline to double export capacity through Fujairah Port, an alternative route that bypasses the Strait of Hormuz. He noted that the current global energy landscape relies too heavily on a limited number of chokepoints, prompting the UAE’s strategic decision over a decade ago to invest in infrastructure that circumvents these vulnerabilities.
The second pipeline, initiated in 2025, is already 50% complete and is on track for accelerated delivery by 2027.
Addressing Global Energy Demand
Dr. Al Jaber reaffirmed ADNOC’s commitment to a $150 billion (Dh551 billion) five-year capital expenditure program aimed at enhancing operations and meeting increasing global energy demand. He pointed out that the sector is dangerously underinvested, with upstream investment hovering around $400 billion (Dh1.4 trillion) annually, which barely offsets natural decline rates. He stressed that global spare capacity should be closer to 5 million barrels per day, as opposed to the current 3 million, especially in light of a recent drawdown of approximately 250 million barrels from storage.
The ongoing conflict has exposed fragilities in supply chains not only for oil and gas but also for essential chemicals, minerals, and fertilizers that underpin the global economy. Dr. Al Jaber stated that the situation is not merely an oil issue but encompasses a wide range of commodities, including LNG, jet fuel, and consumer goods. He noted significant price increases across various sectors, with fuel prices rising by 30%, fertilizers by 50%, and airfares by 25%, impacting families and businesses alike.
The Impact of Regional Conflict
Dr. Al Jaber elaborated on the conflict’s implications for oil markets, indicating that while ADNOC can increase oil production within weeks, it will take four months for oil flows through the Strait of Hormuz to return to 80% of pre-conflict levels, with full recovery not expected until early 2027. He reiterated calls for Iran to cease disruptions in trade through this vital waterway and urged global leaders to uphold freedom of navigation.
He warned that allowing any single nation to hold such a crucial maritime route hostage sets a dangerous precedent, jeopardizing the principle of freedom of navigation.
Strategic Decisions and Future Directions
Despite the challenges posed by the conflict, Dr. Al Jaber stated that the UAE’s leadership has accelerated plans to deliver low-cost, low-carbon energy globally. This strategy is supported by the UAE’s recent decision to exit the Organisation of the Petroleum Exporting Countries (OPEC), made with clarity and confidence to gain greater flexibility in investments and partnerships.
With global oil demand projected to remain above 100 million barrels per day into the 2040s, Dr. Al Jaber emphasized the need for the UAE to produce the lowest-cost, lowest-carbon barrels. He also highlighted the increasing strategic importance of natural gas for power generation and economic growth.
Diversification and Global Partnerships
Dr. Al Jaber noted that the UAE’s exit from OPEC was not a reactionary measure but a strategic decision aimed at fostering long-term value. He emphasized ADNOC’s commitment to diversifying investments beyond traditional energy sectors into areas such as AI infrastructure, data centers, and advanced manufacturing.
The UAE’s relationship with the United States remains pivotal to ADNOC’s international strategy, with the UAE being the largest export market for the U.S. in the Middle East for 17 consecutive years. The UAE has invested over $1 trillion (Dh3.67 trillion) in the U.S., with energy investments through ADNOC, XRG, and Masdar totaling more than $85 billion (Dh312 billion) across 19 states.
Resilience and Future Challenges
Dr. Al Jaber underscored the importance of resilience, stating that it may seem costly until it is needed, at which point it becomes invaluable. He outlined three critical lessons learned from recent events: the necessity of resilience, the integration of AI into operations, and the multifaceted nature of energy security, which extends beyond production to include routes, access, and storage.
He reflected on the UAE’s ability to withstand significant threats, including over 3,000 missile and drone attacks, which tested the nation’s model of development based on coexistence and economic openness. The resilience demonstrated has reinforced the UAE’s standing as a model for development.
Dr. Al Jaber also pointed out the growing energy demands of the AI sector, predicting that global data center electricity demand could double by the end of the decade. He emphasized that countries capable of providing reliable and affordable power will gain a strategic advantage in the evolving landscape.
Dr. Al Jaber invited global energy leaders to convene in Abu Dhabi in November for ENACT Majlis and ADIPEC 2026, aiming to align the global energy economy around principles of resilience.
Source: www.emirates247.com
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Published on 2026-05-20 23:52:00 • By the Editorial Desk
