ADNOC proposes to rebuild the global energy sector: more reserves, refineries closer to the consumer, plus artificial intelligence.
The head of Abu Dhabi's national oil company ADNOC, Sultan Al Jaber, has called for a rethink on the approach to energy security following widespread disruption of supplies through the Strait of Hormuz. Speaking at the ADIPEC conference in Abu Dhabi on November 2, he said that the global energy system has lost a significant part of its reserves, and the main problem is not only the production of raw materials, but also their supply to consumers.
Al Jaber estimates that nearly a billion barrels of oil have been removed from the global supply since the disruption through the Strait of Hormuz began. In some regions, seasonal diesel reserves have fallen to 35-year lows, and the LNG deficit in some markets is estimated at 600 billion cubic feet.
At the same time, shipping and logistics costs rose from less than 5% to more than 30% of the cost of a barrel. Therefore, the presence of oil in the world no longer guarantees its timely delivery to the market.
ADNOC proposes five areas to strengthen energy security:
- Increasing strategic oil reserves and reserves of finished oil products, mainly diesel.
- Developing flexible refining capacity closer to consumers to reduce dependence on remote refineries and vulnerable supply routes.
- Invest in infrastructure and alternative delivery routes in advance, without waiting for the next crisis.
- Use artificial intelligence to predict risks, optimize production and reduce costs throughout the supply chain.
- Create conditions for financing sustainable trade: predictable government policy, access to capital and insurance should help keep freight moving even in times of crisis.
Al-Jaber emphasized that energy security should be assessed not only by the volume of production, but also by whether the energy reaches the final consumer.