The United Arab Emirates (UAE) organized the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC 23) on October 2-5, 2023, just before hosting the United Nations Climate Conference (COP28). Key topics of the conference included the climate crisis, rising energy prices, and companies’ net zero emission roadmaps. COP28 Conference President Sultan Al Jaber encouraged oil and gas companies to become “solution centers” for climate change. While the sector is committed to ensuring the security of energy supply and demand and meeting global energy needs without interruption, questions remain about net-zero targets. [1]
Al Jaber is the CEO of the state-controlled Abu Dhabi Oil Company, which has the capacity to extract 4 million barrels of crude oil per day. The company plans to produce 5 million barrels of oil per day. This year’s conference has been emphasized to focus on “faster decarbonization.” However, the event was about drilling, processing, and selling carbon fuels that are driving climate change. Al Jaber has repeatedly stated that the world must rely on oil and gas to bridge this gap in the near term. [2]
As the world moves towards COP28, international security problems on a global scale have led to a renewed debate on energy security. At the pre-COP28 conference, climate activists expected a constructive roadmap to prevent climate change. ADIPEC 23 overshadowed these expectations and became an “energy security” conference.
Following the decision to hold the conference and COP28 in Abu Dhabi, the UAE has received intense criticism from climate activists. Among the main sensitivities is that the country’s oil and gas production triggers global warming. However, Al Jaber’s statement revealed the realities of the global sector: [3]
“The reduction of fossil fuels is inevitable. Indeed, so is climate change. Nevertheless, it must be part of a comprehensive energy transition plan that is fair, fast, orderly, equitable, and responsible.”
The oil industry is on the rebound. Oil prices have currently continued to trade at around $92 per barrel after briefly falling to negative levels during the woes of the coronavirus pandemic. Diesel prices are also expected to rise due to Russia’s suspension of fuel exports. This will worsen global inflation by increasing transportation prices and will cause these costs to be passed on to consumers.
Secretary General Heysem Al Gays, representing the Organization of the Petroleum Exporting Countries (OPEC) countries, said: “The foundation of today’s global economic prosperity is energy security.” On the other hand, addressing major oil and gas companies, Al Jaber explained that the energy sector is a crucial part of the climate crisis: [4]
“This industry has been considered part of the problem for too long. In some cases, it was seen as blocking progress. This event is actually your opportunity to show the world that you are the center of the solution. “
In the framework of ADIPEC 23, 20 oil and gas companies have declared their commitment to reach “carbon zero” on or before 2050 and to eliminate routine industrial gas flaring by 2030. However, ignoring the global supply-demand balance, a clear and sharp cut in production is called “chaos” for the markets. Instead of “oil and gas” companies, producers are now trying to complete their transformation in a hybrid way as “energy” companies that include renewable energy sources.
One of the technological highlights of the conference was VYMPEL Technologies, a leading provider of hydrogen energy solutions, presenting the company’s latest hydrogen production and storage technologies. In particular, the company focused on zero-emission technologies such as the Dew Point Analyzer and Cong Prima. These featured companies represented just a sample of the many innovative businesses that came together at ADIPEC 23 to highlight green energy technologies. This event stands as a testament to the industry’s commitment to a sustainable future. Showcasing the latest developments in green energy innovation made the platform even more effective. [5]
In light of this information, while carbon producers and green transformation contradictions continue before COP28, the role of base power plants in meeting energy demands continues. It is analyzed that with the development of hydrogen storage and capture technologies in the future, fossil fuels will decrease, and hydrogen will create a new market as a fuel. It was noted that the large-scale transition to renewable energy will not replace fossil fuels in the long term and will not achieve price stability. It was also emphasized that the new hybrid technologies exhibited at the conference will open a new page in the global energy sector for our future.
[1] “The UAE Holds a Major Oil and Gas Conference Just Ahead of Hosting UN Climate Talks İn Dubai”, AP, https://apnews.com/article/uae-emirates-oil-conference-cop28-climate-7633ba2ae5f9ff3d234888548b4f5800, (Erişim Tarihi: 03.10.2023).
[2] Aynı Yer.
[3] “UAE Holds Major Oil and Gas Conference Before Hosting COP 28 Climate Summit”, ENERGY MIX, https://www.theenergymix.com/2023/10/02/uae-holds-major-oil-and-gas-conference-before-hosting-cop-28-climate-summit/, (02.10.2023).
[4] Aynı Yer.
[5] “Increased Focus on Green Technologies at ADIPEC 2023”, EMIRATES NEWS AGENCY-WAM, https://www.wam.ae/en/details/1395303204955, (Erişim Tarihi: 03.10.2023).
