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211052
Tue, 10/04/2011 - 11:02
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https://www.oananews.org//node/211052
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UAE continues to invest heavily across the hydrocarbon value chain, says UAE OPEC governor
Dubai, Oct 4, 2011 (WAM) - These are not risks that have any major policy implication for countries such as the UAE, which are in for the long haul and able to withstand the ups and downs of the global oil market, according to United Arab Emirates OPEC governor and General Manager of Abu Dhabi's ADNATCO ''&'' NGSCO Ali Obaid Al-Yabhouni.
"We continue to invest heavily across the hydrocarbon value chain. Our aim is not to produce a few extra barrels over the coming months but to endow ourselves with the capability to continue exporting oil and gas at stable rates into the next decades, for the benefit of future generations", Yabhouni added in a speech at the 19th Middle Petroleum and Gas Conference (MPGC 2011), opened today in Dubai.
He stressed the UAE's "export capability because many of the massive investments in our domestic energy industry, such as those in renewables and nuclear power plants, are aimed at freeing up more hydrocarbons for export to consuming nations, while at the same time, allowing us to reduce our carbon footprint." He added that especially during times of uncertainty, we all face a common challenge and key players in the oil market need to work together through, for example, improved IOC-NOC collaboration. NOCs also need to work together, sharing experience, technology and research, for our mutual benefit.
The current sovereign department crisis in the Euro zone that threatens the world economy, added to fears of a double dip recession, are clearly unrelated to events in global energy markets. Indeed, time and time again, we have seen major oil producing countries using their sovereign funds to step in to make major strategic investments to shore up international financial institutions and energy conglomerates, Obaid Al-Yabhouni.
"For most of this year, oil prices have been at a level that encourages producers to continue making those massive investments that are required to continue supplying global markets," "Oil supply and demand appears to be largely in balance, while at the same time managing to respond effectively to unexpected circumstances as and when they inevitably occur. Over the last few months, we have seen one important producer face disruption in its supply and halt its exports completely, yet it was noticeable that it had a short-lived, and rather negligible, impact on oil prices," he further said.
"Importantly for us, as producers, has been the global economy's ability to withstand current prices, which I should stress are being established in international markets within a context of adequate supply from all major producers. No-one complains of supply tightness and stock levels throughout the world remain at comfortable levels." "This does not mean, of course, that the oil market will not be affected by this latest chapter in the global economic emergency. After several years in which attention was focused on supply, it is now evident that we need to keep a close eye on demand, despite the fact that emerging economies have accounted for the bulk of the oil market's demand growth over the last few years, notably China and India," Yabhouni added.
He cited recent forecasts which suggest that China's economy will grow at 9.0% in 2011, while India growth will slow slightly to 7.7%. This remains remarkably strong.
"However, there are ominous clouds on the horizon that represent a major downside risk. HSBC's recent China Flash Purchasing Managers Index showed the Chinese factory sector contracted for a third consecutive month last month, as both new orders and new export orders fell on slack global demand.
Yabhouni also noted that there are already evidence of falling oil imports from both China and India, though it will take time to judge whether this is due to seasonal factors or whether there is a structural reason for the fall.
"Markets are beginning to realize the risks, as some forward prices, for the first time in many months, move from contango to backwardation," he explained.
The UAE OPEC governor said he was "not predicting a major demand slump", but rather "simply warning that we have to remain alert, ready to respond to changing situations, in particular to growing concerns over the economy and its inevitable impact on oil demand." "Economic growth needs to be built on stable foundations. These include strong financial institutions, stable regulatory frameworks, continued technological innovation, fiscal transparency and energy security, all factors that will allow the world to crawl back into a sustained growth. Together, as an industry, we are responsible for the last pillar - by no means the least important one - and we can be confident that the investment undertaken in recent years will guarantee future energy stability for decades to come," Yabhouni further said. - Emirates News Agency, WAM
"We continue to invest heavily across the hydrocarbon value chain. Our aim is not to produce a few extra barrels over the coming months but to endow ourselves with the capability to continue exporting oil and gas at stable rates into the next decades, for the benefit of future generations", Yabhouni added in a speech at the 19th Middle Petroleum and Gas Conference (MPGC 2011), opened today in Dubai.
He stressed the UAE's "export capability because many of the massive investments in our domestic energy industry, such as those in renewables and nuclear power plants, are aimed at freeing up more hydrocarbons for export to consuming nations, while at the same time, allowing us to reduce our carbon footprint." He added that especially during times of uncertainty, we all face a common challenge and key players in the oil market need to work together through, for example, improved IOC-NOC collaboration. NOCs also need to work together, sharing experience, technology and research, for our mutual benefit.
The current sovereign department crisis in the Euro zone that threatens the world economy, added to fears of a double dip recession, are clearly unrelated to events in global energy markets. Indeed, time and time again, we have seen major oil producing countries using their sovereign funds to step in to make major strategic investments to shore up international financial institutions and energy conglomerates, Obaid Al-Yabhouni.
"For most of this year, oil prices have been at a level that encourages producers to continue making those massive investments that are required to continue supplying global markets," "Oil supply and demand appears to be largely in balance, while at the same time managing to respond effectively to unexpected circumstances as and when they inevitably occur. Over the last few months, we have seen one important producer face disruption in its supply and halt its exports completely, yet it was noticeable that it had a short-lived, and rather negligible, impact on oil prices," he further said.
"Importantly for us, as producers, has been the global economy's ability to withstand current prices, which I should stress are being established in international markets within a context of adequate supply from all major producers. No-one complains of supply tightness and stock levels throughout the world remain at comfortable levels." "This does not mean, of course, that the oil market will not be affected by this latest chapter in the global economic emergency. After several years in which attention was focused on supply, it is now evident that we need to keep a close eye on demand, despite the fact that emerging economies have accounted for the bulk of the oil market's demand growth over the last few years, notably China and India," Yabhouni added.
He cited recent forecasts which suggest that China's economy will grow at 9.0% in 2011, while India growth will slow slightly to 7.7%. This remains remarkably strong.
"However, there are ominous clouds on the horizon that represent a major downside risk. HSBC's recent China Flash Purchasing Managers Index showed the Chinese factory sector contracted for a third consecutive month last month, as both new orders and new export orders fell on slack global demand.
Yabhouni also noted that there are already evidence of falling oil imports from both China and India, though it will take time to judge whether this is due to seasonal factors or whether there is a structural reason for the fall.
"Markets are beginning to realize the risks, as some forward prices, for the first time in many months, move from contango to backwardation," he explained.
The UAE OPEC governor said he was "not predicting a major demand slump", but rather "simply warning that we have to remain alert, ready to respond to changing situations, in particular to growing concerns over the economy and its inevitable impact on oil demand." "Economic growth needs to be built on stable foundations. These include strong financial institutions, stable regulatory frameworks, continued technological innovation, fiscal transparency and energy security, all factors that will allow the world to crawl back into a sustained growth. Together, as an industry, we are responsible for the last pillar - by no means the least important one - and we can be confident that the investment undertaken in recent years will guarantee future energy stability for decades to come," Yabhouni further said. - Emirates News Agency, WAM
