29 Jan United Arab Emirates: no more betting on oil

The first world producer of oil comes to terms with the fall in prices.

On the occasion of the OPEC meeting held in Vienna, Suhail Al Mazroui, Minister of Energy of the United Arab Emirates, made some statements in an exclusive interview with Euronews.

“Compared to other manufacturers, we have the lowest production costs,” the Minister explained. “We have to maintain a high level of production, so we need to be subsidised in the market, much more than producers who have higher costs, this is how it works. The decision of OPEC, namely, to let the market determine the price, will lead to stabilisation. The market will find a balance and we expect this to happen next year. I would like to point out the results that OPEC has achieved with this policy: between 2013 and 2014, non-OPEC oil producers inundated the market with 2.8 million barrels per day. If we compare this figure with that of production between 2014 and 2015, we will see that the amount of production surplus was decreased by 88%…”.

As a result, the United Arab Emirates aims to diversify its economy to reduce its dependence on oil.

“We were dependent on fossil fuels and gas. – continues the Minister -. Today, we have another policy. In 2021, we will have about 30% green energy, which does not release emissions and is not produced from oil or nuclear power. This policy aims to diversify energy sources and thus also the economy.
We have already made this step, enhancing the tourism industry and the petrochemical sector. We have projects underway both within the country and outside the United Arab Emirates. Diversification is the way to go to be able to celebrate, in the near future, the export of the last barrel of oil, as His Majesty Mohammed bin Zayed said: “We must lay the foundations for a generation that can celebrate the export of the last barrel of oil”. We must not rely only on oil, in fact we must continue to pursue the diversification strategy“.