Though declining oil prices, UAE didn’t cancelling oil project

Though oil investments have been cut by $200 billion this year 2015 and will probably drop again during the next year, UAE expands its oil investments and pushing ahead with large new energy projects, expecting price recovery by next year.

“These are times of some hesitancy , times of pain for some … But pain is not new … We will pass it stronger,” energy minister Suhail Al Mazrouei told the UAE’s biggest annual oil show in Abu Dhabi.

“That (oil price drop) didn’t change the vision of the UAE … We are not cancelling projects,” he added. As for energy investments, the country is pushing ahead with a plan to raise its oil production capacity from 2.9 million bpd currently to 3.5 million barrels per day within the next three years.

Some $35 billion worth of investments will flow into offshore exploration after decades of investments into onshore, he said.

The UAE is hoping the main share of its energy needs will be covered with rising gas production by 2021, while around a third of energy needs will be met by nuclear and solar projects, said Al Mazrouei.

He also expressed his country support to OPEC strategy aiming at defending OPEC market share through higher output and lower prices. “I’m not regretting this decision. We like that decision,” he said

As the markets have begun to rebalance, global oil prices will start an upward correction in 2016, Al Mazrouei said. “I wouldn’t call it a crisis. I would call it a cycle … I’m optimistic. Next year will be a year of correction”.

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