UAE is hosting COP28 in order to boost domestic oil output

 UAE is hosting COP28 in order to boost domestic oil output

UAE is hosting COP28 in order to boost domestic oil output

According to information obtained by the BBC, the nation hosting the COP28 climate negotiations is drastically boosting its own oil output in an effort to reduce emissions from fossil fuels.

Analysts regarded as the worldwide gold standard in oil market intelligence predict that by 2030, the state oil corporation of the United Arab Emirates, Adnoc, may drill 42% more.

Between 2023 and 2050, only Saudi Arabia is anticipated to generate more.

According to Adnoc, the projections depict prospective oil output rather than actual production.

It claimed to have already made intentions to raise manufacturing capacity by 7% over the next four years quite obvious.

The company said that it is growing into renewable energy and making its operations more climate-friendly since it is generally understood that some oil and gas will be required in the next decades.

Reducing or eliminating the use of fossil fuels, such as gas and oil, is the primary goal of COP28.

Sultan Al-Jaber is ADNOC's CEO and the Chairman of COP.

According to a recent review of data from the oil business, Adnoc is now expanding quickly.

The International Energy Agency and other international organizations, as well as fossil fuel businesses, rely heavily on Rystad Energy's oil market data, which provides information about Adnoc.

Rystad estimates projected oil and gas output from government agencies, corporate data, and scholarly study.

Using this data, the campaign group Global Witness compiled a list of the world's leading oil producers until 2050.

UAE was ranked #2, behind Saudi Arabia. At the moment, it has the 12th position globally.

According to Rystad, if production increases by 42% this decade, output is expected to climb from little over a billion barrels in 2023 to over 1.5 billion barrels by 2030.

According to the statistics, this rapid increase is anticipated to continue until the 2030s, at which point output is predicted to start to fall in the 2040s.

By 2050, Adnoc is projected to produce 850 million barrels of oil year, a substantial decrease from the billions of barrels produced to far.

It is anticipated that global output would decrease by the midpoint of the century.

According to Climate Analytics senior scientist Bill Hare, Adnoc's "shocking" rise in anticipated output "goes completely against every detail we know needs to be done to limit warming to 1.5C."

"This runs contrary to the COP President Obama's own commitment to make 1.5C the north star of climate talks," he said.

"The chances of keeping temperatures to 1.5C will be destroyed by this amount of oil and gas."

By 2050, Adnoc's entire production will still fall short of that of Aramco, the national producer of Saudi Arabia, which is expected to produce 101 billion barrels.

That being said, this would be a lot more than the five "supermajors" (Shell, BP, ExxonMobil, Chevron, TotalEnergies, and ConocoPhillips) put together.

The study shows that by 2050, emissions from Adnoc's increasing output will total more over 14 billion tonnes of CO2, which scientists estimate to represent more than 6% of the Earth's total capacity to prevent global warming to less than 1.5C.

The International Energy Agency's chief, Fatih Birol, said that Adnoc's growth will not help to maintain global temperatures below hazardous levels.

"It is not possible for any fossil fuel company to say 'I'm going to increase the production process by one million barrels of oil while ensuring that the same time my company's strategy is consistent with the Paris climate accords'," he said.

He said, "These two don't work at the same time," to BBC News.

According to Adnoc, there was no differentiation between prospective and actual output in the study.

Businesses often have the ability to produce significantly more oil, but they are unable to do so either of the market's surplus supply or because of OPEC cartel restrictions.

"We have explicitly stated that we are growing our production capacity from approximately 4.65 million barrels per day to 5 million barrels per day by 2027," an Adnoc official said. This indicates a 7% rise in the capacity for output.

"It's crucial to remember that this is capacity rather than output. Additionally, Adnoc's portion of the output is not shown."

"All energy transition scenarios, among them from the IEA and Rystad, accept that some level of oil and gas will be needed for addressing future energy demand," Adnoc said.

"We are committed to cutting our carbon intensity to 25% by 2030 by making an initial investment of $15 billion to decarbonize our business activities and expedite the development of the energy future. We are producing some of the least carbon intensive oil and gas in the world. are dropping by a percentage. "Including geothermal, renewable, and hydrogen energy."

"Projected annual hydrocarbon extraction rates" refers to actual output, not prospective production, according to Global Witness' analysis.

He claims that Adnoc has made this information accessible to the public.

"These results demonstrate how Adnoc intends to produce more oil than almost every operator on the globe and aims to significantly raise its output, regardless of the outcome of COP28—scientific consensus According to Patrick Gallie of Global Witness, Sultan al-Jaber has been told to start discussions in Dubai, a clear breach of this directive.

Numerous uncertainties surround future oil production and consumption, which may have an impact on market supplies. Political green leaders, meanwhile, argue that it is not the right time to seek fresh prospects for oil drilling.

One Green Party member in the European Parliament, Bas Eikhout, said, "Sultan Al-Jaber, as COP president and Fossil CEO, is now required to set the only right example as well as come forward with a pledge to change Adnoc's future plans."

"Not only is his reputation in jeopardy, but it will also determine whether the UAE's COP Presidency succeeds or fails."