Oil producers who felt out of place at last year’s COP 26 summit are now being treated as superheroes because of strong demand for their reserves, UAE Energy Minister Suhail al-Mazroui said at an industry event.
Mazroui said it is not possible to have sub-investments and promote renewable energy sources and then call for increased production during a crisis – long-term planning is needed.
“I think at COP 26 all the producers felt uninvited and unwanted but now we are superheroes again, it does not work that way,” he said.
Resource-rich developing countries have repeatedly opposed demands to move away from fossil fuels, calling for a more coordinated transition.
Mazroui stressed the need to invest in oil and gas alongside renewables as the energy transition progresses, saying the OPEC + alliance needs to replace at least 5-8 million barrels lost each year to keep production where it is. .
The United Arab Emirates will work with OPEC + to ensure that the energy market is stable, he said.
The UAE is doing its best to increase capacity to 5 million barrels a day, but that does not mean they want to act independently or leave OPEC +, an alliance that includes members of the Organization of the Petroleum Exporting Countries (OPEC). Russia and other countries, Mazroui said.
“We as a country are trying to do the best we can. We are investing and increasing our capacity to 5 million barrels,” the minister said. “But this does not mean that we will leave OPEC + or do something unilaterally. We will work with this team to ensure that the market is stable.”
The OPEC + alliance is expected to have its next meeting on March 31. The group is raising its production target by 400,000 barrels per day from August to boost production following cuts as the pandemic reduced demand.
The oil market is volatile, having been hit by the Russian invasion of Ukraine and the expansion of lockdowns due to COVID in China, the world’s largest crude importer.
Mazroui said the OPEC + alliance should be left out of politics. “I think the organization will stay, Russia is an important member,” he said.
Brent crude jumped 11.5 percent last week amid concerns that sanctions against Russia over the Ukraine crisis could start to erode its output and exports.
SOURCE: AMPE
Source: Capital
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