May 27, 2024

Dubai’s role in the Global Oil Sector today

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One of the most significant commodities in the world, oil, makes up around 3% of the gross domestic product. Petroleum products are used in a variety of items, including medicine, clothing, fuel for vehicles, solar panels, as well as personal protective equipment, plastics, chemicals, and fertilizers. The price of oil is currently close to USD 100 a barrel.

Booming economic growth is further driving the demand for oil. Technology solutions are also important factors that boost the oil industry. Energy transformation is accelerated by oil and gas technology solutions. The energy sector is changing as a result of net zero targets, which are forcing companies to reconsider their products, processes, and customer experiences. Asset monitoring is considered a new emerging technology for boosting the oil sector or for maintaining sustainable energy solutions. IoT-enabled sensors can offer remote access to usage and maintenance data of large equipment used in offshore drilling that is positioned in remote locations with harsh circumstances. Oil refineries with IoT-enabled sensors can also supply real-time data to regulate performance parameters.

When talking about oil sector, the UAE can’t be missed out. The UAE is always renowned for its massive oil production industry. Oil, popularly called as “black gold,” has made the UAE one of the richest nations in the world. The oil business has fundamentally altered the nation. The global stock of proved reserves is 46.6 times that of yearly usage. Thus, there will be enough oil for around 47 years (at current consumption levels and excluding unproven reserves). UAE has the fifth-largest oil and gas reserves in the world, with Abu Dhabi holding more than 90% of those reserves and Dubai holding 4%.

While talking about Dubai, the offshore Fateh field in Dubai is where oil was first discovered in 1966. Dubai began oil exports in 1969 and 180 thousand barrels or more of oil were exported for the first time from the Fateh field. At Falah, oil drilling exploratory wells started up production and it embarked in June 1978. With over 4 billion barrels of oil on hand, Dubai is the second-largest oil producer in the United Arab Emirates. Dubai’s oil production peaked in 1991 at 410,000 b/d and is still striving to maintain its position. There are several organizations involved in this massive oil industry of UAE. One of them is Emirates National Oil Company or simply known as ENOC. 

Contribution of Emirates National Oil Company to Dubai

Emirates National Oil Company (ENOC), a wholly-owned subsidiary of the Dubai government, debuts its first oil refinery in 1999. The refinery, which is estimated to have cost Dh1.5 billion, can make 120,000 barrels per day. It is a top integrated global oil, gas, and coal industry player that operates along the whole value chain of the energy industry. Since the formation of the organization, it has significantly aided Dubai’s ongoing efforts to diversify its economy and pursued sustainable growth.

The organization has always been the cutting-edge energy partner to provide sustainable value and performance that leads the industry. It is continuously striving to provide superior integrated, sustainable energy solutions. However, it continues to achieve this by focusing on operational excellence, innovation, and the satisfaction of its partners, customers, and staff. The Middle East, South East Asia, and Africa are among the 60 international markets where the Emirates National Oil Company (ENOC) operates.

These markets are also supported by ENOC’s presence and influence due to its solid partnerships with a number of Middle East, South East Asian, and African businesses. Exploration and production (E&P), terminals (storage), supply, trading and processing, marketing, and retail are the five divisions under which ENOC conducts business. ENOC Marketing also oversees a variety of oil and gas products, such as industrial goods, aviation fuel, and gas and lubricants. Additionally, this sector interacts with a diverse group of clients in the Middle East, the Indian subcontinent, South and Central Asia, and Africa. The marketing division handles local markets, as well as the needs for commercial supply in the CIS countries, the Middle East, Asia, and Africa.

Enoc Award Logos

Considering ENOC’s excellent performance in providing the most sustainable oil and gas solutions to the UAE, International Business Magazine has awarded ‘Leading Integrated Oil and Gas Provider UAE 2022’ to the organization. The magazine also awarded ‘Most Sustainable Energy Solutions Provider UAE 2022’ to ENOC Retail as well as ‘Leading Digital Fuel Delivery Platform’ to ENOC LINK, which is a fuel delivery business. 

Investors can enjoy the most professional atmosphere in the UAE due to its established and prominent oil business. Along with opportunities to network with new clients and business partners, it also offers exposure to the oil and gas sector. Not to mention, the country’s convenient and expert infrastructure and shipping for crude and processed oil products.

By Tasleem Majumder

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