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EXCLUSIVE INTERVIEW
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لمحة عامة
H.E. Suhail Mohamed Al Mazrouei
Minister of Energy & Industry UAE
How do you perceive the current
and future geopolitical landscape?
This is a tricky question as geopolitics
is always unpredictable. At this
current time, we are unsure of how
the situation regarding Iran waivers
will play out. Moreover, as of most recently,
the United States-Venezuela
relations, or rather lack thereof since
January, was also an unforeseen
circumstance that has us unsure of
what the final outcome will be. With
that said, it seems that there will definitely
be more geopolitical turmoil
on the horizon, but OPEC and OPEC
Plus will continue striving for market
balance regardless of what obstacles
stand in the way.
Al Mazrouei, “We are firmly committed to
achieving market balance while the UAE is
targeting a 50% clean energy increase by 2050”
Can you identify key trends you
have been witnessing, or that you
anticipate in the near future?
In recent times, there has been an
uptick in refinery expansion in the
UAE. This has given us strong reason
to believe that there will be a heavy
emphasis on asset optimization, and
in terms of competition there will be
very little to none. Major players like
China and India are, and have been,
seeking investment in these refineries.
Since these are the two largest
nations with highest growth rates
globally, this has been a huge positive
for the UAE’s growth. Under the
country’s great leadership, we are accordingly
preparing for 2071. Thus,
this cooperation is great for us as
exchanging valuable information with
other nations will effectively aid in
realizing this vision.
After delivering an insightful Ministerial Address to open the 27th edition of MPGC, His Excellency Suhail
Mohamed Al Mazrouei sat down for an exclusive interview with Marasi News to offer his expert insight regarding
the market, OPEC, geopolitics, key trends and LNG.
By Effat Mostafa
Can you please provide an overview
of the UAE market in 2018 versus
now?
2018 was a year of balance. We
predicted that oil prices would stabilize
and average out by mid year, and
they did. However, external geopolitical
factors kicked in shortly after,
specifically in regards to the United
States’ President Trump imposing
sanctions on Iran. As a result, in June
of 2018 at the 4th OPEC and non-
OPEC Ministerial Meeting in Vienna,
we decided to increase production in
an attempt to re-balance the market.
In the coming months the market
felt the brunt of our decision, and
we realized that we may have acted
preemptively. This was a learning experience
that has since yielded more
caution from our end, and in December
2018 we decided to change our
strategy again by slashing production
to 1.2 million bpd.
What is your top priority moving
forward?
We are firmly committed to achieving
market balance, as it is the best
possible outcome for both traders
and consumers. Though 2019 is still
young, we are proud of such a quick
turnaround from last year. After
three months of examining and analyzing
market drivers and dynamics, it
seems that we are on a positive trajectory
moving forward. At the same
time, we are hoping that we won’t
see an overproduction of shale in the
U.S, as this will likely lead to a repeat
of market imbalance like last year and
we are also urging trading houses to
be creative in how they share information
of value with NOCs.
OPEC and OPEC Plus will continue striving
for market balance regardless of what
obstacles stand in the way"
What is your opinion on LNG as a
fuel of the future?
LNG fuel emits zero suplhur oxides
(Sox), virtually zero particulate
matter and up to 90% less nitrogen
oxides. Because of this, LNG is
flourishing and seems to be the most
suitable solution for curbing harmful
emissions. Furthermore, the UAE
is targeting a 50% clean energy increase
by 2050. Oman, Saudi Arabia,
Kuwait and so many other key players
in the GCC and Middle East are
starting to also view LNG as a key
to the future. Currently, LNG is sells
at $5 local price, which is more than
double that of the United States.
However, this won’t be the fixed
price, as moving forward we will raise
it based on formulas and analytics to
increase market competition.
24 MARCH NOVEMBER - APRIL - DECEMBER 2019 2018
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