Oil producers who focus on efficiency, value creation, commerciality and excellence will be successful in an era of unpredictable oil prices, said Dr Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO.

Delivering the keynote address at Adipec 2016, the world’s most influential event for the oil and gas industry, in Abu Dhabi, Dr Al Jaber said: “While we cannot predict the future price of oil, one factor remains well within our control and that is the cost of every barrel we produce. In this new energy era we must reflect on how to make the most of our resources, enhance our performance and find new ways to be more competitive.”

By driving efficiency and leveraging synergies, oil and gas companies can succeed in the new energy era, he stressed, but sound, strategic, targeted investments are equally important to enable sustainable growth.

Adipec, hosted by Adnoc and organised by dmg events, opened today (November 7) at Adnec and will run till November 10.

“Time and again, our industry has shown it can engineer around obstacles, create ground breaking solutions and catalyse human progress,” said Dr Al Jaber.

“Today’s new energy landscape calls on us to once more to break from old conventions and welcome new paradigms. By embracing the new energy era, we will thrive and we will shape our future.”

Using Adnoc as an example, Dr Al Jaber said the company is not waiting for times to change, but taking charge of its own future to ensure its resilience and long-term prosperity.

Under its new 2030 strategy and five-year business plan, Adnoc will diversify and increase production of its petrochemical portfolio, while opening new markets to ensure sustained profitability. It also intends to expand its refining capacity to meet growing demand for refined products.

“We will stretch the margin from every barrel we produce,” said Dr Al Jaber. “And by taking full advantage of our geography, at the pivot point between East and West, we will capitalize on the world’s fastest growing markets, including Asia, where oil demand is expected to increase 15 per cent and the market for petrochemicals is set to double by 2030.”

Dr Al Jaber stressed innovative forms of collaboration are needed in order to maximize success in the new energy era.

“To fully unlock those opportunities, we require a new model of partnership across the industry, one that creates real and tangible value by bringing technology, experience, resources and market access to the table,” Dr Al Jaber said.

“At Adnoc we are focused on growth and we are open for business,” he added.

Dr Al Jaber’s comments were delivered days after Abu Dhabi’s Supreme Petroleum Council approved Adnoc’s new 2030 strategy and five-year business plan, which seek to deliver a more profitable upstream, more valuable downstream and a more sustainable and economical gas supply, in line with the directives of Abu Dhabi’s leadership

In addition to creating a more commercially minded organisation, Adnoc is also building on its legacy of success by creating a performance led culture and developing its talent.

“Our most precious resource lies not in the ground, or under the sea, but in the people of our organizations. Investing in our human capital and nurturing a performance led culture is the best investment we will ever make. And to truly excel, we must take advantage of the entire talent pool, both women and men alike,” Dr Al Jaber said.

Oil companies also have a paramount duty to protect their employees, he added, and there can be no compromises on keeping them safe, while at the same time ensuring the integrity of operations, safeguarding communities and protecting the environment.

Speaking on the same day as the COP 22 Marrakech Climate Change Conference opened, in Morocco, Dr Al Jaber said: “The industry is doing its part to protect the environment, while supplying the energy needed to drive the global economy.”

Adnoc, he said, is producing cleaner fuels for its customers, and advancing innovative clean technologies, including the Middle East’s first carbon capture utilization and storage project which was inaugurated on Saturday. The facility will capture, use and sequester 800,000 tonnes of CO2 every year. – TradeArabia News Service