Oil markets recover to 1990s level but impact of COVID-19 on
supply and demand to continue into 2021
Kaabi tells latest ADIPEC Energy Dialogue it is critical
petrochemical companies address plastics waste issue by deploying
emerging technologies
ABU DHABI, UAE, Sept. 28, 2020 /PRNewswire/ -- Global demand
for oil is likely to peak around 2030, as the world recovers from
the impact of COVID-19, according to Musabbeh Al Kaabi, CEO of
Petroleum and Resources at the UAE's Mubadala Investment
Company.
In a wide ranging interview, conducted as part of the ADIPEC
Energy Dialogue series, Al Kaabi
shared his outlook on the recovery of oil and gas markets and the
long term impact of demand post COVID-19 on energy supply and
demand.
Al Kaabi said COVID-19 caused oil
demand to drop by 30 per cent in March and April, from a peak of
100 million barrels per day at the end of 2019. However, demand has
started to recover, he added, reaching levels seen in the 1990s and
will rise further over the coming 12 months.
Reflecting on the long-term impact of COVID-19, Al Kaabi said the post COVID-19 world be totally
different, with fewer people travelling and lower activity in a
number of sectors of the economy. And, while demand for energy will
edge back to 2019 levels, some sectors, such as jet fuel, will take
longer to recover than others.
"Predicting the oil market is very challenging. COVID-19 has
created major disruption to demand and we expect to see the
continuation of that disruption in 2021. But if you project the
horizon to 2030, we will go back to an acceptable level of growth,
potentially peaking in 2030," said Al
Kaabi.
Addressing concerns over future supply issues, Al Kaabi said climate change pressures, concerns
over ESG and government policies are impacting the investment
decisions by big international oil companies, which could result in
episodes of disruption of supply. But he added, this would create
space for national and privately owned oil companies to invest in
the upstream sector.
Al Kaabi added national and
international oil companies should learn from history and be more
proactive in dealing with the decarbonisation of their
operations:
"In the past companies put themselves in a defensive mode when
they should have deployed and promoted innovative technology to
minimise the carbon footprint of their production.
"I see a similar trend in the petrochemicals sector, where it is
critical companies address the plastics waste issue and not be in a
state of denial," Al Kaabi said.
However, he added, he is optimistic emerging technology will help
the downstream sector address this and other challenges it
faces.
The ADIPEC Energy Dialogue is a series of weekly online thought
leadership events created by dmg events, organisers of the annual
Abu Dhabi International Exhibition and Conference. Featuring key
stakeholders and decision-makers in the oil and gas industry, the
dialogues focus on how the industry is evolving and transforming in
response to the rapidly changing energy market.
With this year's in-person ADIPEC exhibition and conference
postponed to November 2021, the
ADIPEC Energy Dialogue, along with insightful webinars, podcasts,
and online panels continue to connect the oil and gas industry,
with the challenges and opportunities shaping energy markets in the
run-up to and following, a planned four-day live-stream virtual
ADIPEC conference taking place from November 9-12.
An industry-first of its kind, the online exhibition,
conferences and awards ceremony will bring together energy leaders,
ministers, global oil and gas CEOs as well as the engineering
faculty to assess the collective measures the industry needs to put
in place to fast-track recovery, post COVID-19.
To watch the full ADIPEC Energy Dialogue go to:
https://www.youtube.com/watch?v=d2IOoX1cVfw&t=519s.
About ADIPEC
Held under the patronage of the President of the United Arab Emirates, His Highness Sheikh
Khalifa Bin Zayed AL Nahyan, and organised by the Global Energy
division of dmg events, ADIPEC is the global meeting point for oil
and gas professionals. Standing as one of the world's top energy
events, and the largest in the world, ADIPEC is a knowledge-sharing
platform that enables industry experts to exchange ideas and
information that shape the future of the energy sector. The 36th
edition of ADIPEC Virtual will be hosted by the Abu Dhabi National
Oil Company (ADNOC) and supported by the UAE Ministry of Energy
& Industry, Masdar, the Abu Dhabi Chamber, the Abu Dhabi
Department of Culture and Tourism, Abu Dhabi Ports and the
Department of Education and Knowledge. dmg events is committed to
helping the growing international energy community. To know more,
visit: www.adipec.com.
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