Gearing Up with the Fast Growing Oil and Gas Industry
The United Arab Emirates is ranked seventh in terms of oil and natural gas reserves in the world. The average Oil consumption and production of UAE is around 3.7 million barrels per day, 96% of which are located in Abu Dhabi, which has placed sixth in the rankings worldwide. Further in 2020, the UAE announced the discovery of over 80 trillion cubic feet of gas resources in Jebel Ali. Because of this, the majority of UAE’s revenue comes from profits from oil and gas exports. With our wide range of gas reserves, we seek to become more self-sufficient in terms of gas supply until 2030. Oil and Gas from Source to Consumption
How does the whole industry work?
There are three segments in the industry working together to produce the diverse products sold to consumers worldwide. These are the upstream, midstream, and downstream sectors. The Upstream sector refers to the exploration and production of crude oil and natural gas from the reserves. This involves multiple activities from acquiring land rights to conducting geological surveys in exploring reserves, up to the process of extraction of the natural resources from the ground through onshore and offshore drilling.
The next process in the production of oil and gas products refers to the Midstream Sector. This covers the storage and transportation of extracted materials for further processing and refining. Midstream also includes relevant infrastructures, (such as pipelines) necessary to the transport of these resources through long distances.
The Downstream sector covers the final phase of the whole production. This sector covers the process of oil refinery, turning crude oil and natural gas into a diverse range of products marketed worldwide to consumers. Downstream operations comprise also the distribution, retailing, and wholesaling of the final products.
Innovating Toward a Cleaner Energy Future
Climate change is very real!
In response to the alarming effects of Global Warming, companies from around the world are continuously finding efficient ways to expand opportunities as the world shifts towards environmental sustainability. Many oil and gas companies are exploring clean energy in alignment with net-zero emissions.
The UAE has launched the UAE Net Zero by 2050 strategic initiative. As part of the country’s commitment to achieve net-zero emissions by 2050, the government has invested $16.8 billion in clean and renewable energy ventures, setting an example for other nations worldwide.
The country also created the Ministry of Climate Change and Environment with the vision of adopting sustainable environmental policies to mitigate the impact of global warming. UAE was also one of the first countries to support the
“Kyoto Protocol” in 2005 which aims to limit greenhouse gas emissions in industrialized countries.
In the emirate of Abu Dhabi, the government has established the Masdar smart city which aims to rely on clean energy for rapid urbanization. Similarly in the Emirate of Dubai, the government has also pushed for AI-powered projects aiming to transform into a smart city. This is the first residential project set to produce clean energy- reflecting the country’s goal of environmental sustainability.
The Oil and Gas consultants Industry amidst the transition towards Environmental Sustainability Are we a part of the problem or the solution? More than 20 oil and gas companies have expressed their support to COP28 president Sultan al Jaber in his calls to curb carbon emissions as a fighting stance against climate change. According to him, we need to have a “system-wide holistic transformation on economies currently running on around 250 million barrels of oil, gas, and coal every day.” He has also urged major energy companies to make the industry a central part of the solution rather than being the cause of more problems, or even blocking the progress towards sustainability.
Experts from Climate Action Tracker stated that the fossil fuel expansion plans of UAE are not inconsistent with the goal of limiting global heating to 1.5°C. They have defined the following “good practices” which they have urged countries to refer to in their campaigns to achieve net zero targets:
The key is Initiative!
The UAE has already started implementing programs for the use of renewable energy. As one of the largest producers of oil and gas products, it is a challenge for the country to adapt to sustainability in terms of the energy world.
But if we want to be a part of the solution, we need to adapt and innovate further in the industry in parallel to the ever-evolving and changing world.