[NOVEMBER REPORT]

What is ADIPEC?

Held under the patronage of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, the President of the United Arab Emirates, ADIPEC (abréviation for ABU DHABI INTERNATIONAL PETROLEUM EXHIBITION & CONFERENCE), is the world’s leading oil and gas event which is held every year in November. It brings up businessmen from the oil and gas industry to meet and discover new business opportunities and exchange ideas and information for the future of the energy section.

Gas and Oil production in the UAE:

The U.A.E. is the world's seventh largest crude oil producer and the fourth largest producer of petroleum liquids in the Organization of the Petroleum Exporting Countries (OPEC). In addition, the U.A.E. holds the seventh largest natural gas reserves globally. The U.A.E. controls its own oil and gas production and resource development. The capital owns the majority of gas and oil reserves. Abu Dhabi holds 94 percent of the U.A.E.'s oil reserves, or about 90 billion barrels (2017), which can be found both offshore and onshore. The U.A.E.’s natural gas reserves are estimated at 6.0 trillion cubic meters. Abu Dhabi holds the majority of the reserves (94 percent). 

Unlocking the opportunities that will flow from digitalization, (such as AL/Artificial Intelligence), the number-one trend driving CEO decision-making in the global oil and gas sector, will be a key focus in the world’s leading oil and gas event this year.

On the first day,

• - The Abu Dhabi National Oil Company (ADNOC) signed a framework agreement with Saudi Aramco (Aramco) to explore potential opportunities for collaboration in the natural gas and Liquefied Natural Gas (LNG) sectors. 
• - ADNOC CEO, H.E. Dr. Al Jaber, defines central mission of the industry as ‘Oil and Gas 4.0’, “We are at the cusp of a new age of opportunity for our industry, an era in which digital innovation is delivering unprecedented levels of progress, this era, known as the 4th Industrial Age, is creating a paradigm shift in global growth and driving demand for our products. Our industry must step up to enable this massive step-change in global development. In short, this mission can be given a simple name: Oil and Gas 4.0.”

On the second day,

• - Ali and Sons Marine Engineering and Tozzi have signed a JV (joint venture) agreement. The JV will specialize in Modularization, E-houses, and other Oil and Gas essential systems with the combination of the local resources of Ali and Sons Marine Engineering and the experience and capabilities of Tozzi in the field of Oil and Gas.
• - Discussions about obtaining the finance for new oil and gas projects becoming more complex were held, because the transport sector and power generation are moving away from hydrocarbons towards renewable energy sources.
• - His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, said: “ADNOC is embracing Oil and Gas 4.0 and helping to drive the 4th Industrial Age, by using AI, Big Data and Blockchain to enhance our operational efficiency, maximize our performance, drive our profitability and empower our people.”
• - ADNOC signed the first of a series of concession agreements with Italy’s multinational oil and gas company, ENI. “In combination with ADNOC’s leading experience in ultra-sour gas, Eni’s field development experience supports the accelerated delivery of gas from the Hail, Ghasha and Dalma fields. At the same time, it will enable the further optimization of costs and ensure we extract the maximum value from our gas resources.” ADNOC CEO, H.E. Dr. Al Jaber said.

On the third day (last)

• - Abu Dhabi expanded the program for ADIPEC, it included sessions on the practical aspects of digitalization, such as the use of artificial intelligence in the oil and gas sector.
• - ADNOC and Mubadala Investment Company (Mubadala) signed a framework agreement to explore together potential global growth opportunities. They will explore the potential for the processing of crude oil and other hydrocarbons supplied by ADNOC, as well as potentially utilizing technologies owned by Mubadala with the product off take by other ADNOC companies. 
• - The Abu Dhabi National Oil Company (ADNOC) has agreed to extend to 2040 its gas supply agreement with ADNOC LNG.
• - ADNOC senior management also provided updates on company’s downstream plans to expand its refining capacity, triple petrochemicals production and grow its international downstream footprint with targeted investments.

Although I unfortunately couldn’t attend ADIPEC this year as I was planning to (I was overseas), I had fun reading about most of its details. It amazes me how oil and gas companies, while being aware that those resources will become scarce in the future are trying to utilize artificial intelligence and generally digitalization; who are basically the future to unlock opportunities in the oil and gas industry. 

ADNOC’s efforts are admirable. In spite of the increase in price of fuel because oil and natural gas (petroleum) are becoming more and more scarce in the UAE, they made a service called "Premium Service". For a small fee, aside from having an employee fuel your car, wash the windscreen and check your tire pressure, you get premium rewards which include coffee, snacks or a discount on an in-station car wash. They can be redeemed in ADNOC Distribution stores, using a bill following the fuel purchase. Although they can't control oil and gas scarcity; they are currently satisfying their consumers in the most efficient way possible. ADNOC aside, I cannot wait to know and see what the future is ahold of and what will businessmen will be able to achieve with the embracement of digitalization in those industries, whether they'll make the switch to renewable resources or find a way, through digitalization to make oil and natural gas less scarce.

Main Source: https://www.adipec.com/2018-press-releases/