As the world moves towards clean energy, oil and gas companies are under increasing pressure to transition to renewable energy sources. However, it seems that this pressure has not affected the share prices of oil companies, as is evident from the surge in shares of ADNOC Gas, a subsidiary of Abu Dhabi National Oil Company (ADNOC), ahead of the COP28 climate talks later this year.
ADNOC Gas is a new subsidiary that only became operational at the beginning of this year. However, it has already managed to raise $2.5 billion in an initial public offering (IPO), which was heavily oversubscribed. The IPO was expanded from 4% to 5% of issued share capital in response to strong interest, with the final offer price of 2.37 dirhams implying a market capitalization of around $50 billion.
Growing Demand For Gas
The surge in shares is a clear indication of the growing demand for gas as a cleaner fossil fuel alternative. Gas has been touted as a transition fuel in the move away from hydrocarbons, as it emits fewer pollutants and has a lower carbon footprint than oil. As countries around the world strive to reduce their emissions, natural gas is expected to play an increasingly important role in the global energy mix.
Sultan Al Jaber And ADNOC
However, the appointment of Sultan Al Jaber, an oilman and the CEO of ADNOC, as the President of COP28, has raised concerns about the UAE’s commitment to combating climate change. The UAE is heavily reliant on the oil and gas industry, which accounts for over half of its GDP. With Al Jaber lobbying for the oil and gas industry, it remains to be seen whether the UAE will take bold steps towards transitioning to renewable energy sources.
“Questioning UAE’s Commitment to Renewable Energy: Al Jaber’s Appointment as COP28 President Under Scrutiny”
The appointment of SultanAl Jaber has been criticized by environmentalists who argue that it is contradictory to the UAE’s vested interest. They argue that Al Jaber’s primary responsibility is to lobby for the oil and gas industry, upon whose UAE’s economy is standing. Therefore, his appointment as the President of COP28 raises questions about the UAE’s commitment to transitioning to renewable energy sources.
The surge in shares of ADNOC Gas ahead of the COP28 climate talks is a clear indication that the oil and gas industry remains a major player in the global energy mix. While gas may be a cleaner fossil fuel alternative, it is not a long-term solution to the problem of climate change. The world needs to transition to renewable energy sources if it wants to avoid the catastrophic consequences of global warming.
“Controversial Appointment of Al Jaber Raises Concerns about UAE’s Commitment to Combatting Climate Change”
The appointment of Al Jaber as the President of COP28 is a controversial decision that has raised concerns about the UAE’s commitment to combating climate change. While the UAE has made some progress in transitioning to renewable energy sources, it remains heavily reliant on the oil and gas industry. The appointment of Al Jaber, an oilman, sends a mixed message to the world about the UAE’s commitment to transitioning to renewable energy sources.
In conclusion, the surge in shares of ADNOC Gas ahead of the COP28 climate talks is a clear indication of the growing demand for gas as a cleaner fossil fuel alternative. However, it is important to remember that gas is not a long-term solution to the problem of climate change. The appointment of Al Jaber as the President of COP28 is a controversial decision that raises questions about the UAE’s commitment to combating climate change. The world needs to transition to renewable energy sources if it wants to avoid the catastrophic consequences of global warming.
