Slump in world oil prices will not impact UAE economy, OPEC has no plan to cut output
Slump in world oil prices will have no impact on the UAE's vibrant economy, Suhail bin Mohammed Faraj Faris Al Mazrouei, the UAE Minister of Energy, emphasised on Tuesday. The minister told the Gulf Intelligence UAE Energy Forum in Abu Dhabi that the UAE would move ahead with plans to boost its oil and gas production capacity and the UAE Strategy 2030 will continue to focus on energy management, efficiency and rationalisation. The UAE's refining capacity, he said, would increase to one million barrels per day by 2015.
'The UAE is not worried about its national economy due to the decline in the world oil prices... Its economy is strong and based on a policy through which the government seeks to reduce dependence on oil year after year. The UAE economy was not affected by previous instances of decline in oil prices and it will not (happen now), thanks to its economic wellbeing,' Al Mazrouie stressed.
'It is the market fundamentals, not any producer, that determines the prices,' he said, adding that the OPEC has no intention to hold an emergency meeting before its official scheduled meeting in next June nor does it plan to reduce output for the time being.
The minister believed that current oil prices were not sustainable and expected the world economy to grow at rates higher than those of today. He also urged not to jump to any conclusion in regard to the current oil prices while there is a prospect for economic recovery and renewed hope about an increase in demand for oil and gas.
He noted that the low oil prices provided an investment opportunity for all parties, adding that the current situation provides a fitting opportunity for reviewing contracts amidst falling oil prices.
He said that Mubadala Petroleum and Abu Dhabi National Energy Company (TAQA) can seize the investment opportunity in the world markets according to their international strategic objectives.
The Forum brings together the UAE national energy industry and its international partners at the start of each year in an intimate and robust knowledge exchange on the most pressing issues facing the energy industry.
International guest speakers include Aldo Flores-Quiroga, Secretary General of the International Energy Forum, Lord David Howell of Guildford, former UK Secretary of State for Energy, Xiaojie Xu, International Advisor to China's National Energy Administration, and Narendra Taneja, President of the World Energy Policy Summit. – Emirates News Agency, WAM –