Abu Dhabi: The United Arab Emirates reiterated that the country will play a key role in the stability of oil markets and will continue to invest despite several companies cancelling their projects due to the current slump in oil prices.
“The UAE is investing today and will continue investments while many companies are cancelling their projects. Those who invested in difficult times are going to be ready to introduce that production to the market when there is a need for it to stabilise the market,” Minister of Energy Suhail Al Mazrouei said on Thursday, the last day of the Abu Dhabi International Petroleum Exhibition and Conference (Adipec).
He said that the UAE played a key role in the political stability of this region and the country will play a key role in stability of oil markets in the future.
“That is the role of bigger players like the UAE, Saudi Arabia and others. This is the buffer we always built for us to enable that balance to happen.”
Oil prices have plunged by more than 50 per cent in the last one year as production increases across the globe. From a price of $115 per barrel in June last year, oil prices dropped to less than $50. Organisation of Petroleum Exporting Countries (Opec) refused to cut production to prop up prices.
When asked about what would be the position of Opec countries when they meet in Vienna next month, he said they will do whatever they can to stabilise the market.
“We cannot do this alone. Everyone has to do his share. We are hopeful that next year is going to be a year of correction. For that to happen we need everyone to do their part. We are ready to do our part and we look forward to cooperate with everyone in making 2016 a year of correction.”
He was optimistic that oil prices will bounce back next year.
“The prices will bounce back. We are not talking about a certain price. Last thing we want is crazy fluctuations, which is not good for world economy and customers.”
The energy minister said that the UAE is focusing on all forms of energy including solar, nuclear and fossil fuels to remove the imbalance in the sector and meet growing energy demand.
“When Abu Dhabi looked at the gas, they brought in Dolphin. That project happened and solved the problem. When imbalance coming in energy sector, we thought of nuclear which was controversial at that time. It took us ten years from concept to having the plant. That effectiveness in taking the decision and dealing with challenges makes us planners and doers. Today we are thinking what will happen in 2030.”
The four day Abu Dhabi International Petroleum Exhibition and Conference (Adipec) came to an end on Thursday. According to organisers more than 86,000 people visited Adipec and business worth $7 billion was generated in the first three days of the event.
