The United Arab Emirates is poised to become the second-largest source of oil and gas after the United States over the next decade, according to estimates provided by Wood Mackenzie, as reported by The New York Times.
The New York Times emphasized that ADNOC is transitioning beyond oil, expanding globally into gas, chemicals, and renewable energy. Before the appointment of Dr. Sultan Al Jaber, the Minister of Industry and Advanced Technology and CEO of ADNOC, the company had long relied on the substantial revenues from its low-cost oil fields without the need for major changes. The new mandate was clear: to modernize ADNOC to guarantee its continued support for the UAE’s economy.
Since his appointment in 2016, Dr. Sultan Al Jaber has played a significant role in transforming ADNOC into a global energy player, solidifying the UAE’s position in the oil sector.
Ben Cahill, a director at the Center for Energy Systems and Environment Analysis at the University of Texas, noted that Dr. Al Jaber has completely reshaped the company and altered the approach to managing the oil sector.
Global Acquisitions
According to the report, ADNOC, established in 1971, is now looking beyond oil and aims to pursue international acquisitions, particularly in natural gas, aspiring to secure a place among the top five global suppliers, while also expanding its reach in chemicals, renewable energy, and other sectors.
Dr. Sultan Al Jaber indicated that ADNOC is open to participating in the development of natural gas resources in Venezuela, aligning with U.S. efforts to attract investments following the ousting of Venezuelan President Nicolas Maduro and subsequent control of the energy sector there.
Through its acquisition arm, XRG, founded in 2024, the company is investing in an American liquefied natural gas project and also holds stakes in gas assets in countries such as Azerbaijan, Egypt, and Mozambique.
To diversify its sources away from oil, ADNOC is collaborating with the Austrian company OMV, which ADNOC partly owns, to establish a global chemicals firm under the name Borealis International.
Moreover, Dr. Al Jaber has also been instrumental in founding Masdar, a renewable energy project developer partially owned by ADNOC, which is planning to expand at a time when other global oil companies like Shell are retracting investments in clean energy due to low profitability.
Experts believe ADNOC may be on the verge of launching multiple projects simultaneously. Robin Mills, CEO of Qamar Energy in Dubai, which works with ADNOC, mentioned, “They are trying to do a lot all at once.”
COP28
Within ADNOC, Dr. Sultan Al Jaber is commonly referred to as “Doctor,” a nod to his PhD in economics obtained from Coventry University in the UK. In 2023, he chaired the COP28 climate conference held in the UAE while concurrently serving as the CEO of ADNOC.
He also holds other important positions, including Minister of Industry and Advanced Technology. Dr. Al Jaber mentioned in an interview, “The main drive behind all of this is to transform ADNOC from a traditional national oil company into a global energy company capable of competing.”
To optimize the use of Abu Dhabi’s resources, Dr. Al Jaber has recruited new international companies to leverage their expertise in natural gas and other sectors, and has invested in artificial intelligence to enhance ADNOC’s operations. The UAE is among the few nations with the financial and technical capabilities to continue growing.
Production Increase
Increased production has bolstered the UAE’s presence within OPEC+, enabling it to secure hikes in its production quota. According to the International Energy Agency, UAE’s production has risen by over 10% over the past two years, reaching 3.6 million barrels per day, thus making it the third-largest producer in OPEC after Saudi Arabia and Iraq.
This growth has occurred despite Dr. Sultan Al Jaber reducing ADNOC’s workforce to approximately 50,000, down by 15,000 from 2016.
Wood Mackenzie estimates that over the next decade, the productivity of seven of the largest oil firms operating in the UAE will increase by around one-quarter, positioning the UAE as the second-largest producer behind the United States.
ADNOC has also raised billions of dollars from institutional investors like GIP and KKR through deals that involved selling stakes in its pipeline network. Starting in 2017, Dr. Al Jaber has separated six units from ADNOC and listed portions of them on the Abu Dhabi Securities Exchange.
Robin Mills noted in the Arabian Gulf Business Insight that “representing a public company to investors and the media is a new experience for most CEOs.”
ADNOC is aiming to implement international acquisitions in natural gas.
The UAE ranks as the third-largest producer in OPEC, following Saudi Arabia and Iraq.
Significant investments are being made in artificial intelligence to refine operations.
ADNOC remains open to collaborating on the development of natural gas resources in Venezuela.