The UAE holds the seventh-largest proven oil and natural gas reserves globally, with approximately 97.8 billion barrels of oil. As a member of OPEC and the Gas Exporting Forum (GECF), the country produces about 4 million barrels of petroleum and liquids per day, maintaining a reserve of 100 billion barrels of crude oil.
Oil and gas contribute significantly to the UAE’s economy, accounting for 30% of GDP and 13% of total exports. The country has recently expanded into unconventional gas resources, including coal steam gas (CGS) and coal bed methane, positioning itself as the newest global producer of unconventional gas by November 2020. The UAE also made a major natural gas discovery at the Jebel Ali reservoir in June 2020, with 80 trillion cubic feet of gas. The country is aiming for gas self-sufficiency by 2030, reducing reliance on imports, particularly from Qatar.
Notably, three of Abu Dhabi’s key government-backed companies- Mubadala, ADNOC, and ADQ- along with the Ministry of Energy and Infrastructure (MoEI), formed a hydrogen alliance in early 2021. Their goal is to produce blue and green hydrogen using both natural gas and renewable energy for both domestic and international markets.
Despite setbacks caused by the COVID-19 pandemic, oil production is expected to increase as the government and ADNOC continue expansion projects. Although the natural gas industry has been less impacted, there are ongoing risks due to disruptions in domestic and global demand
