Efficiency and diversification key for energy sector: Enoc

Dr Fereidun Fesharaki, Chairman, FGE; Shaikh Ahmed bin Saeed Al Maktoum and Saeed Khoory at the annual Middle East Petroleum & Gas Conference in Dubai on Monday. — KT photo by Leslie Pableo

The Middle East’s energy sector is entering a new era of responsibility with increased focus on strengthening efficiency and renewable sources, Saeed Khoory, CEO of Emirates National Oil Company, or Enoc, said on Monday.

Delivering the opening remarks at the 22^nd annual Middle East Petroleum & Gas Conference, Khoory said the region was also giving priority on exploring renewable sources to achieve sustained growth and for the benefit of our future generations.

Shaikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Supreme Council of Energy, President of Dubai Civil Aviation Authority, and Chairman and Chief Executive, Emirates airline and Group, inaugurated the two-day conference.

Since the launch of MPGC 22 years ago, the global energy landscape has witnessed remarkable transformation. In the Middle East region too, there are fundamental shifts that is shaping a new narrative for the oil and gas sector, said Khoory.

“While the region, no doubt, has witnessed tremendous growth in the past two decades led by energy sector revenues, we are now entering a new era, where we must relook at the energy scene with greater foresight. The coming period is the ‘era of responsibility’ for every stakeholder in the industry supply chain. We must place our highest priority on strengthening energy sector efficiency and exploring renewable sources to achieve sustained growth and for the benefit of our future generations,” he said.

Khoory said that the Middle East region is now witnessing unprecedented changes that have a direct impact on the energy sector. “The key priority for governments today is to address social concerns relating to job creation and social welfare. Increasingly, more oil revenues are being invested to develop new infrastructure, thus creating new jobs for the region’s youth. Simultaneously, demand for electricity and fuel is rising at exponential rates. It is therefore imperative that we closely examine our priorities in energy sector development.”

Highlighting the advances made by Dubai in promoting energy efficiency and renewable energy, Khoory said has outlined its Integrated Energy Strategy to reduce power consumption by 30 per cent and further diversify our energy mix by tapping into solar, nuclear and clean coal. “Enoc is supporting the strategy by placing the highest emphasis on a two-pronged development strategy of maximising efficiency and diversifying our fuel mix.”

He said that Enoc is currently strengthening its refinery infrastructure in Dubai as part of the company’s operational efficiency enhancement measures.

“We have also invested in new storage and terminalling facilities to leverage the booming global trade. Simultaneously, we are also focusing on strengthening our contribution to renewable energy. Enoc has introduced Compressed natural gas as a cleaner and greener alternative fuel, and the response we receive from a number of clients, including the government sector, is overwhelming. In this, we take inspiration from the visionary guidance of Dubai’s leadership.”

Enoc is hosting MPGC for the ninth year as well as hosting the 3^rd annual Base Oil & Lubes Middle East (BLM 2014), and the Middle East Jet Fuels Conference. Both events will be held as part of the Middle East Petroleum & Gas Week from April 16 to 17.

At MPGC, Zaid Alqufaidi, Managing Director — Marketing of Enoc, chaired a panel discussion on ‘Global & Middle East Market Outlook.’ The conference call for increased fuel efficiency came as the International Energy Agency trimmed its forecast for a rise in oil demand this year following Russia’s annexation of Crimea and warned of lower oil production.

The Paris-based energy watchdog lowered its expectations for the increase in oil supply from outside the Organisation of the Petroleum Exporting Countries in 2014 by 250,000 barrels a day to 1.5 million barrels a day.

The revision to its non-Opec supply forecast saw the IEA increase its expectation of the demand for Opec’s oil this year by 300,000 barrels a day, even as the oil-producing group’s output fell to its lowest in five months in March.