The historic shift in energy use, from West to East, coupled with the rapid adoption of advanced technologies, are creating new challenges and opportunities for the global oil and gas industry as it changes gear to meet the growing energy demand from the high-growth economies of Asia, according to Dr. Sultan Al Jaber, UAE Minister of State and Group CEO of the Abu Dhabi National Oil Company (ADNOC).
Speaking at the panel session titled ‘Energy Challenges in the New Economies’, at the inaugural Bloomberg New Economy Forum (NEF) in Singapore, of which ADNOC is a Founding Partner, Dr. Al Jaber highlighted the evolving energy demand will be driven by the rapid growth of the middle class in Asia over the next few years. India’s middle class will shortly exceed 500 million – twice the population of the entire United States, and China’s middle class is expected to grow to 750 million by 2025.
Aliko Dangote, President and Chief Executive, Dangote Industries Limited and Darren M. Woods, Chairman and Chief Executive Officer of ExxonMobil, Dr. Al Jaber said as the global economy continues to expand, the world is witnessing unprecedented demand for energy. He also noted that in the evolving energy landscape, the industry must find innovative ways to ensure a reliable, equitable and sustainable supply of energy and energy-based products to new economy markets.
“The goals of the New Economy Forum are in line with the UAE’s 2071 strategy to prepare for the future and capture the opportunities that lie ahead. It also aligns with the UAE’s vision for building bridges, connecting global economies, and enabling sustainable prosperity,” Dr. Al Jaber said.
“Energy demand is growing globally, but demand in Asia is growing over twice as fast as the rest of the world. Oil and gas will play a fundamental role as part of a diversified energy mix. And ADNOC is stepping up to ensure it continues to be a trusted and reliable supplier of oil and gas to meet the increasing demand from growing economies.”
Dr. Al Jaber noted that Abu Dhabi’s recent concession agreements with both India and China, two economic powerhouses that are redrawing the global energy map, demonstrate the historic shift taking place toward the New Economies of the East. He also highlighted the rapid advance of digital technologies, such as Artificial Intelligence, Big Data, and Blockchain, can transform the oil and gas industry’s ability to respond to this step change in global energy demand.
“The world around us is transforming at an unprecedented rate, and we are witnessing a revolution in digitisation. The UAE recognises digital technology is a game changer that can positively shape societies, lift economies and transform the potential of all people. At ADNOC we are leveraging the latest technology, artificial intelligence, and big data to empower our thinking and propel our business forward.”
Bloomberg’s New Economy Forum has convened 400 preeminent leaders to begin seeking private sector-led solutions to challenges created by a world economy in transition, increasingly led by China and India as well as rising powers in Africa, the Middle East, and Latin America.