Low oil prices won’t affect UAE, investments will continue in oil industry: Minister of Energy

ABU DHABI: Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy, has stressed that the UAE will continue making investments in the oil and gas industries, and that with its balanced and long-term policy, the country will not be affected by the decline in oil prices, especially if they do not decline for a long time.

The Minister of Energy made these comments yesterday on the sidelines of a reception that the Department of Energy held for its strategic partners in Abu Dhabi. Suhail bin Mohammed Al Mazrouei said that he believes the current slump in the price of crude oil “will not last long”, and that the oil market will regain its balance.

“Experience has taught us this, and everyone should assume their responsibilities to get the market back in balance,” he said.

“OPEC did not contribute to the increase in supply. It has a fixed share on the global market which does not exceed 30 percent. So it is not logical to expect OPEC to resolve the effects of market oversupply,” he said, stressing that any change in the output policy must be well thought out and that the new producers must assume their responsibilities to balance the market for everyone’s benefit.

Al Mazrouei went on to say that all parties are affected by the slump, whether it is OPEC members, non-members, or shale oil producers. “No one likes the decline in prices at the moment, but it is not right for just one producer to intervene. The one causing the decline must contribute in fixing the market imbalance,” he said.

He added, “It all comes down to creating a balance between market supply and demand for the benefit of the global economy. The global oil market will balance out and will create new rules that will help it to be more sustainable in the future.”

SOURCE: WAM