UAE Oil Production

UAE Oil Production: An Overview Of Reserves, Output, And Future Prospects

The UAE oil Production is increasing because gulf state wants to make money from its oil reserves before the world starts using cleaner energy. People who know about this say it is happening quickly.

Abu Dhabi National Oil Co. wants to produce more oil by 2025 instead of 2030. They plan to make 5 million barrels a day, which is difficult and expensive. They originally wanted to do this by 2027. The UAE wants to sell more oil and gas while prices are high. Even though prices have gone down a bit, they are still making a profit.

Oil And Gas Market Analysis of UAE

The UAE oil production market will likely grow by more than 2% from 2022 to 2027. COVID-19 caused lower oil prices, which led to a 5.3% decrease in the nation’s 2021 budget compared to 2020. 

UAE Oil production was also reduced in 2020 due to low prices and demand. However, the oil and gas market is expected to recover in 2022 due to increasing investment and government support. The country is also launching a project worth $45 billion to increase refining capacities by 65% by 2025. 

The market will be driven by investments in upstream, midstream, and downstream sectors, but renewable energy may slow down growth. The upstream industry will likely dominate the market with upcoming projects and investments. 

There will be many opportunities for market players due to the increasing demand for LNG and the integration of innovative technologies into existing infrastructure. Rising investments in upstream and midstream sectors will drive the market.

Oil And Gas Market Trends of UAE

UAE Oil Production trend
© Statista

This part talks about the UAE Oil & Gas production Market and what is expected to happen according to experts:

  • The Upstream Sector is expected to be the most significant part of the market
  • In 2020, UAE made 13.2% of the Middle East’s oil and produced 3.66 million barrels per day
  • The UAE has 97.8 billion barrels of oil and 5.9 trillion cubic meters of gas reserves, mainly in Abu Dhabi
  • Some new oil and gas discoveries were made in Abu Dhabi recently, which could help future projects
  • To make up for the old fields, the country plans to spend more on expanding current projects and using new techniques to get more oil
  • Because of all these things, the Upstream Sector is expected to be the most essential part of the oil and gas market in the UAE in the future

Investments in UAE oil production capacity are on the rise in the Emirates, which is a big producer of crude oil and petroleum liquids. The oil and gas industry is significant for the UAE’s economy and makes up a big part of its revenue. To make the industry even more profitable, the UAE has plans to invest more money in different sectors in the coming years.

One company, Abu Dhabi National Oil Company (ADNOC), announced to invest around AED 165 billion in the downstream sector ahead of COP28 in UAE. Other recent projects, such as a new export pipeline and expansion of the Fujairah port, are also helping to increase the UAE’s oil and gas capabilities.

In November 2020 and 2021, the UAE government and ADNOC announced plans to invest over USD 122 million and almost USD 6 billion, respectively, to boost UAE oil production capacity and gas self-sufficiency.

With all these investments, the UAE’s oil and gas market is expected to grow during the forecast period.

UAE Oil Production Market News

  • In Feb 2021, ADNOC gave exploration rights for Abu Dhabi’s Offshore Block 4 to Cosmo E&P Albahriya Ltd, a subsidiary of Japan’s Cosmo Energy Holdings Co. Cosmo will have a 100% stake in an exploration and invest up to USD 145 million, including a participation fee
  • In Dec 2021, ADNOC announced a capital spending plan of USD 127 billion for 2022-2026 to increase UAE’s oil and gas reserves
  • In Jan 2022, ADNOC Offshore awarded a USD 946 million EPC contract to the National Petroleum Construction Company for the strategic development of the Umm Shaif field, following a competitive tender process