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UAE calls for realistic and comprehensive approach to energy sector transformation

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Today, Monday, the UAE called for a realistic, logical and positive approach to the transformation of the energy sector, in order to ensure energy security and promote economic growth.
This came during the keynote address delivered by the Minister for Industry and Advanced Technology, UAE Special Envoy for Climate Change, Dr. Sultan bin Ahmed Al Jaber, at the Atlantic Council Global Energy Forum, which It takes place outside the World Government. Summit, organized by the Emirate of Dubai.

geopolitical clashes
Al-Jaber stressed that “the decline in long-term investments in oil and gas and an unrealistic approach to keeping pace with the transformation in the energy sector makes markets more vulnerable to geopolitical shocks.”

During his keynote address at the sixth session of the Atlantic Council Global Energy Forum, held today at Expo 2020 Dubai, Sultan Al Jaber emphasized the global need to continue investing in low-cost, low-emission energy sources. capable of providing the world’s energy. basic electricity needs during the transformation stage in the energy sector, demanding a pragmatic approach to keep pace with the transformation in the energy sector that ensures global energy security and contributes to continued economic growth.

The Minister for Industry and Advanced Technology said: “We are all witness to the sensitivity of energy markets to geopolitical turbulence in the world. In addition to these turbulences, the volatility in energy markets is due to fundamental structural imbalances, such as declining Long-term investments in oil and gas have made the markets more vulnerable to many risks.”

keep up with demand
“According to the International Energy Agency, annual investments in oil and gas are $200 billion below the level needed to keep pace with global energy demand in the period up to 2030,” it added.

We are witnessing a decline in supply versus demand in the oil markets in the near term, as demand increased by some 3 million barrels compared to last year, and is expected to return to pre- COVID-19 for the fourth quarter of this year.”

Dr. Sultan Al Jaber added: “Pressures to reduce investment in hydrocarbon resources are now facing a clear reality, and policies need to be adopted to keep pace with the energy transition that is capable of meeting the energy needs of the world.” real world”. “

economic principles
He said: “Achieving an unrealistic approach that ignores basic economic principles will lead to a decline in supply versus demand, especially in markets that are most vulnerable to geopolitical shocks, due to declining investment in energy sources. on which the world economy depends, will lead to a supply-side crisis that will lead to slower growth.”We can’t just abandon the current energy system before creating a new one.”

The Minister for Industry and Advanced Technology explained that “many policymakers in other countries around the world, including several European countries, have begun to accept this reality.”

Dr. Sultan Al Jaber added: “Policymakers have realized that the transformation in the energy sector needs more time, and they are working to adjust their policies to ensure that energy security is not affected in the short term, due to long term. The goals have now come to a similar conclusion as we have since, which is that we should work to reduce emissions, not reduce growth rates and progress.”

During his speech, he highlighted that the UAE takes a proactive, positive and balanced approach that focuses on supporting growth and sustainability, and takes into account reducing the impacts of climate change.

increased investment
Al Jaber said: “We are working in the UAE to increase investment in low-emission and carbon-free energy sources, and we are working to increase the production capacity of our oil, which is the least intense in the world, to reach more than 5 million barrels per day by 2030, in conjunction with doubling the production capacity of our portfolio of projects in the renewable energy sector is five times, and we are also working to increase the production capacity of natural gas in 30%, to improve our ability to provide more supplies of LNG”.

He added: “To achieve this, the UAE adopts a strategy based on economic feasibility studies and a firm belief that the studied transformation in the energy sector charts a flexible path to develop new industries, provide more job opportunities and achieve a long-term sustainable”. long-term economic growth.

The Minister for Industry and Advanced Technology said: “When the UAE began investing in renewable energy sources more than fifteen years ago, it was difficult to determine the economic viability of these investments, but our wise leadership took a forward-looking view that proved successful and effectiveness through proven facts Today, the country is considered the UAE to be home to some of the largest and least expensive solar power plants in the world.

He concluded his speech by saying: “From our position as officials of the energy sector, we must promote the adoption of realistic and logical plans for the transformation of the sector, and work together to formulate a clear roadmap built on solid foundations, and to adopt policies that improve the stability of energy markets and continue to invest in resources Future and new energy We must not stop investing in the current energy system before building the new energy system By following this approach, we will improve our ability to increase flexibility, promote prosperity and achieve sustainable growth for all.

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