Energy security, AI and supply deals take centre stage as Adipec wraps up
Energy security jeopardised by supply disruption throughout the Iran war and the growing use of AI by oil companies to improve productivity were among the key themes at Adipec , which concluded on Thursday. Thousands of companies took part in the four-day event, with large participation from Asia. Senior oil executives and energy ministers highlighted supply challenges impacting the market as the…
Adipec concluded on Thursday, with energy security, AI, and supply deals taking center stage. Thousands of companies participated in the four-day event, with a large turnout from Asia. Senior oil executives and energy ministers discussed supply challenges, particularly the disruption caused by the Iran war and the presence of AI in the industry.
Dr Sultan Al Jaber, the Minister of Industry and Advanced Technology, highlighted that the Strait of Hormuz, a crucial oil trade route, remains closed, resulting in a loss of nearly one billion barrels from global oil inventories. He also noted that diesel stocks in some markets have reached their lowest seasonal levels in 35 years, while liquefied natural gas supply gaps have increased to 600 billion cubic feet.
Delivery costs have risen significantly, as logistics now account for more than 30% of a barrel's cost, up from less than 5% prior to the disruption. The risk of crossing the Strait of Hormuz is high due to ongoing attacks by Iran on ships. Dr Al Jaber stressed the importance of constructing new infrastructure and maintaining capital flows to finance trade movement.
The UAE, no longer a member of OPEC, is investing heavily in its energy infrastructure, including the construction of a new pipeline to bypass Hormuz and supply crude to global markets.
Adnoc also signed an agreement with OpenAI and Abu Dhabi's G42 to deploy OpenAI's Frontier technology, integrating advanced AI capabilities across Adnoc's operations. This move aims to improve efficiency and productivity by enhancing connected operational, investment, and commercial decision-making. OpenAI CEO Sam Altman emphasized that AI should serve people instead of the other way around.
Al Mazrouei, the Minister of Energy and Infrastructure, reported that the UAE continued its oil exports despite the war and managed to fill supply gaps, even overshooting certain countries due to a significant reduction in oil output from other nations. Major beneficiaries of UAE's continued oil supply include India, which receives 15% of its total imports during the conflict.
Other energy ministers participating in the event included representatives from Venezuela, Egypt, Romania, and Azerbaijan. Oil company CEOs, such as Meg O'Neill of BP, Richard Jackson of Oxy, and Emma Delane of OMV, also attended panel discussions. Alongside these discussions, new energy deals were announced, including Adnoc Gas's agreement with TotalEnergies for LNG supply and XRG's $1.5 billion investment in Shell's Australian natural gas project.
Additionally, Abu Dhabi’s Ta'ziz closed a $1.39 billion financing deal for two Ruwais projects to support the UAE's industrial development strategy.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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