UAE Won't Let Falling Oil Prices Disrupt Energy Investments

(Bloomberg) -- The United Arab Emirates, the fourth-biggest OPEC producer, is sticking with investment projects to boost energy output even after the plunge in oil prices in the past year.

“Investments are ongoing, we are a mature producer,” Energy Minister Suhail Al Mazrouei told reporters Sunday at a conference in Abu Dhabi, the U.A.E.’s capital and largest emirate. The U.A.E. has said it plans to boost oil-production capacity to 3.5 million barrels a day by 2019. It pumped 2.9 million barrels a day in September, according to data compiled by Bloomberg.

Brent crude has slumped 48 percent in the past 12 months, threatening $1.5 trillion in North American energy investments, according to Wood Mackenzie Ltd. The Organization of Petroleum Exporting Countries led by Saudi Arabia has increased output, signaling its readiness to let prices fall to a level that slows output from high-cost producers such as some U.S. shale companies.

The U.A.E. will spend $35 billion by 2021 to expand non-oil energy assets, including nuclear power and solar, Mazrouei said. The nation aims to reduce its reliance on natural gas for power, while still boosting imports of the fuel, he said.

To contact the reporters on this story: Mahmoud Habboush in Abu Dhabi at; Mais Al-Amouri in Dubai at To contact the editors responsible for this story: Nayla Razzouk at Claudia Carpenter, Bruce Stanley

Copyright 2016 Bloomberg News.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
John B | Oct. 5, 2015
Thats nice to say and all Chad, but its just not going to happen. The mathematics dont work for US drillers (and more importantly, their investors) at the forecasted prices for their products. Russia, KSA, UAE, all have state-companies doing this stuff. They can lose money all day long. US producers, who rely on private capital, simply cannot with their higher lifting costs and limited access to export markets. It was never the shale oil producers themselves that OPEC was targeting, it was the confidence of their financiers.

Chad Smith | Oct. 5, 2015
I am sorry but does nobody else see what is going on here. I have been in the industry for 20 yrs. The oilfield is about who has the biggest pair of brass big ones.. The first ones to bow out are eliminated while the strong survive; survival of the fittest. The US Shale industry needs to get back to drilling, choking back wells, cut rates, and get our AMERICANS working. Russia & UAE are not holding back. Cash reserves are important but we also need to keep the industry moving. The operators have been making huge profits for years (especially service companies) so its time for the people who work away from family to get in the game and not be benched...

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Petroleum / Facilities Engineering Specialist - Offshore
Expertise: Petroleum Engineering
Location: Houston, TX
Petroleum Engineer
Expertise: Petroleum Engineering
Location: Houston, TX
Reservoir Engineering (Oil / Gas Reservoir Management)
Expertise: Reservoir Engineering
Location: Houston, TX
search for more jobs

Brent Crude Oil : $51.78/BBL 0.77%
Light Crude Oil : $50.85/BBL 0.83%
Natural Gas : $2.99/MMBtu 4.77%
Updated in last 24 hours