Chief executives of Saudi Aramco and Abu Dhabi National Oil Company are optimistic that oil demand will return to pre-Covid levels by the end of the year, after vaccine campaigns and government stimulus.
"Global consumption is currently around 94 to 95 million barrels per day, and we expect it to rise to above pre-Covid levels by the end of this year," said Dr Sultan Al Jaber, UAE Minister for Industry and Advanced Technology, and Adnoc Group chief executive, during an online panel session during CeraWeek.
CeraWeek is an annual event run by IHS Markit.
The chief executive and president of Saudi Aramco, Amin Nasser, said oil demand could recover to 99 million bpd next year, helped by growth in energy-consuming markets such as China, East Asia and India.
"We are seeing good cause for optimism and recovery in demand," Mr Nasser said.
"The current demand that we see in the [global] market is about 94 million bpd."
The International Energy Agency and Opec last month revised their demand expectations for this year to about 96 million bpd.
Global oil demand, which slumped in the early part of last year as the pandemic halted all kinds of travel, is set to reclaim 60 per cent of lost volume this year, the IEA said.
Oil prices have surged more than 17 per cent over the past month, supported by vaccine distribution in developed economies and robust Opec+ action.
A strong economic rebound in China, which registered 2.3 per cent growth in gross domestic product in 2020 despite the pandemic, and recovery in India and the US bode well for overall pick-up in crude demand, Dr Al Jaber said.
"From last year's low of about 75 million bpd, the rebound in oil demand has been robust," he said.
Consumption, which faltered in the US and in Europe this year because of renewed lockdowns, is expected to increase as inoculations quicken.
Demand in India, a key Asian importer, was now back to "almost the same as pre-Covid", Mr Nasser said.
"I see demand continue to grow from here, especially from the second half of this year," he said.
Mr Nasser said he expected continued growth in natural gas, despite reservations in some markets about "fugitive" methane emissions.
The term refers to losses and leaks of methane from natural gas production.
The global energy industry is increasingly taking emissions of methane seriously because the gas is 28 times more potent than carbon dioxide in warming the Earth's atmosphere.
"Gas still has better credential over other fuels and it will grow significantly in a number of sectors, especially for power generation, and for industrial and commercial use," Mr Nasser said.
Saudi Arabia, which has begun switching its power stations to gas, will generate 50 per cent of electricity from the transitional fuel and the rest from renewables by 2030.
Hydrogen, which is becoming a top alternative fuel of choice for Gulf oil exporters, is also being given priority for investment.
"We are exploring the potential of new fuels such as blue hydrogen, which in fact shows great promise, as a close-to-zero-carbon fuel that could be produced at scale as part of our existing hydrocarbon value chain," Dr Al Jaber said.
Blue hydrogen is formed when natural gas is split using steam methane reforming.
Saudi Arabia is looking to increase production of ammonia, an easily transportable source for hydrogen, and is running pilots to increase output, Mr Nasser said.
"I expect the costs for both the green and blue hydrogen to come down in the future."
Green hydrogen refers to gas produced from renewables.
Saudi Arabia plans to sell green hydrogen produced in the kingdom to Europe by pipeline, its energy minister said last week.
Sri Lanka squad
Dinesh Chandimal, Dimuth Karunaratne, Kaushal Silva, Kusal Mendis, Angelo Mathews, Lahiru Thirimanne, Niroshan Dickwella, Sadeera Samarawickrama, Rangana Herath, Suranga Lakmal, Nuwan Pradeep, Lakshan Sandakan, Vishwa Fernando, Lahiru Kumara, Jeffrey Vandersay, Milinda Siriwardana, Roshen Silva, Akila Dananjaya, Charith Asalanka, Shaminda Eranga and Dhammika Prasad.
Who is Ramon Tribulietx?
Born in Spain, Tribulietx took sole charge of Auckland in 2010 and has gone on to lead the club to 14 trophies, including seven successive Oceania Champions League crowns. Has been tipped for the vacant New Zealand national team job following Anthony Hudson's resignation last month. Had previously been considered for the role.
UAE currency: the story behind the money in your pockets
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Find the right policy for you
Don’t wait until the week you fly to sign up for insurance – get it when you book your trip. Insurance covers you for cancellation and anything else that can go wrong before you leave.
Some insurers, such as World Nomads, allow you to book once you are travelling – but, as Mr Mohammed found out, pre-existing medical conditions are not covered.
Check your credit card before booking insurance to see if you have any travel insurance as a benefit – most UAE banks, such as Emirates NBD, First Abu Dhabi Bank and Abu Dhabi Islamic Bank, have cards that throw in insurance as part of their package. But read the fine print – they may only cover emergencies while you’re travelling, not cancellation before a trip.
Pre-existing medical conditions such as a heart condition, diabetes, epilepsy and even asthma may not be included as standard. Again, check the terms, exclusions and limitations of any insurance carefully.
If you want trip cancellation or curtailment, baggage loss or delay covered, you may need a higher-grade plan, says Ambareen Musa of Souqalmal.com. Decide how much coverage you need for emergency medical expenses or personal liability. Premium insurance packages give up to $1 million (Dh3.7m) in each category, Ms Musa adds.
Don’t wait for days to call your insurer if you need to make a claim. You may be required to notify them within 72 hours. Gather together all receipts, emails and reports to prove that you paid for something, that you didn’t use it and that you did not get reimbursed.
Finally, consider optional extras you may need, says Sarah Pickford of Travel Counsellors, such as a winter sports holiday. Also ensure all individuals can travel independently on that cover, she adds. And remember: “Cheap isn’t necessarily best.”
UAE currency: the story behind the money in your pockets
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
Abu Dhabi traffic facts
Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road
The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.
Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.
The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.
The highest levels of traffic were found on Sunday, November 10.
Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE SQUAD
Khalid Essa (Al Ain), Ali Khaseif (Al Jazira), Adel Al Hosani (Sharjah), Mahmoud Khamis (Al Nasr), Yousef Jaber (Shabab Al Ahli Dubai), Khalifa Al Hammadi (Jazira), Salem Rashid (Jazira), Shaheen Abdelrahman (Sharjah), Faris Juma (Al Wahda), Mohammed Shaker (Al Ain), Mohammed Barghash (Wahda), Abdulaziz Haikal (Shabab Al Ahli), Ahmed Barman (Al Ain), Khamis Esmail (Wahda), Khaled Bawazir (Sharjah), Majed Surour (Sharjah), Abdullah Ramadan (Jazira), Mohammed Al Attas (Jazira), Fabio De Lima (Al Wasl), Bandar Al Ahbabi (Al Ain), Khalfan Mubarak (Jazira), Habib Fardan (Nasr), Khalil Ibrahim (Wahda), Ali Mabkhout (Jazira), Ali Saleh (Wasl), Caio (Al Ain), Sebastian Tagliabue (Nasr).
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request