Abu dhabi: Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and Group CEO of the Abu Dhabi National Oil Company (ADNOC), Chairman of Masdar, and Executive Chairman of XRG, emphasized the necessity of renewed infrastructure investment and a firm commitment to freedom of navigation through the Strait of Hormuz to bolster global energy resilience.
According to Emirates News Agency, Dr. Al Jaber, in discussion with the Atlantic Council, urged for investment throughout the value chain to fortify the global energy economy. As part of this initiative, ADNOC is advancing a new phase of significant project execution, which includes expediting the construction of a second pipeline to double export capacity through Fujairah Port, avoiding the Strait of Hormuz. Dr. Al Jaber highlighted that the UAE had invested in infrastructure to bypass the Strait over a decade ago, with the second pipeline expected to be completed by 2027.
Dr. Al Jaber reaffirmed ADNOC's commitment to its US$150 billion (AED551 billion) five-year capital expenditure (CAPEX) program aimed at enhancing operations, driving growth, and meeting global energy demand. He noted the sector's underinvestment, with upstream investment around $400 billion annually, insufficient to offset natural decline rates. The global spare capacity is approximately 3 million barrels per day, whereas it should be closer to 5 million. Recent conflicts have highlighted supply chain vulnerabilities across oil, gas, and critical materials, affecting global economies.
He pointed out that the current conflict has severely impacted oil markets, with ADNOC capable of increasing oil production quickly, but full flows through the Strait of Hormuz will not resume before 2027. Dr. Al Jaber called for Iran to cease disruptions in the Strait, urging global leaders to uphold freedom of navigation, which he stressed is crucial for the global economy.
Despite the ongoing conflict, the UAE has accelerated plans for low-cost, low-carbon energy delivery worldwide, following its strategic decision to exit OPEC. This move aims to grant the UAE greater flexibility in investments and partnerships while emphasizing the importance of natural gas for economic growth and AI infrastructure.
Dr. Al Jaber highlighted ADNOC's diversification into AI infrastructure, data centers, and advanced manufacturing, emphasizing the critical UAE-US relationship. The UAE has invested over US$1 trillion in the United States, with ADNOC's energy investments totaling over US$85 billion across 19 states.
ADNOC's robust investment agenda is backed by resilient revenues and strategic partnerships, ensuring continuous supply and competitive products for global customers. Dr. Al Jaber stressed the importance of resilience, AI integration, and energy security in the face of recent challenges.
The UAE's commitment to resilience, diversification, and strategic partnerships has fortified its position as a reliable energy supplier, even amidst adversity. Dr. Al Jaber invited global energy leaders to Abu Dhabi in November for ENACT Majlis and ADIPEC 2026 to discuss resilience principles.
Dr. Al Jaber's insights were shared on the Atlantic Council's AC Front Page Podcast, available on their website.
