Investment in the oil industry remains essential if global demand is to be met, even in a climate of low prices, Hatem Al Mosa, CEO, Sharjah National Oil Corporation (SNOC), told Oxford Business Group’s online broadcasting channel, Global Platform.
In the wide-ranging interview, Al Mosa acknowledged that decisions on when and whether to invest in the sector were often affected by falling prices.
“However, low gas and oil prices also create opportunities for the sector to improve efficiency, the cost of production and the organisational infrastructure,” he noted.
Al Mosa told viewers that while fossil fuels would remain in use ‘for a very long time’, the move towards a diversified, more optimised mix of energy, comprising renewables, nuclear, and unconventional oil and gas sources, was gaining pace.
“We will be continuing to use fossil fuels, but we have to use them responsibly, in the most efficient way and only as a complement to the full energy picture of the world’s energy production and consumption,” he said.
Setting targets, such as the UAE’s goal of 50% renewable/nuclear sources and 50% fossil fuels by 2050, was an essential part of changing the culture around energy, he added.
Turning to the topic of managing energy security, Al Mosa highlighted the importance of investing in infrastructure for both gas importation and storage, which he said would be key to meeting demand across both Sharjah and the northern emirates.
He told viewers that rolling out storage facilities would help the emirate to accommodate the huge seasonal swings in demand it experiences, while supporting the implementation of a strategic, long-term energy plan.