Abu Dhabi will remain a Leader in World Energy Industry says Shell

 

ABU DHABI, Sep 26, 2008 (AsiaPulse via COMTEX) — RDS/A | Quote | Chart | News | PowerRating — With an impressive record of serving its global customers: Abu Dhabi will remain a leader in world energy matters, according to a top executive at the world energy giant Royal Dutch Shell.

“We’ll need all the help technology can give, as the world faces such great energy and environmental challenges. But, above all, the world will need leadership. And here Abu Dhabi can and will play a very strong role,” said Malcolm Brinded, Executive Director Exploration and Production, Royal Dutch Shell.

Through a presentation on Energy: “Inevitable transformation and difficult choices”: Shell global energy scenarios to 2050, the world energy expert said “One vital area of leadership is in meeting the world’s growing need for oil and gas.

“Abu Dhabi has an impressive record of serving its global customers: by applying advancing technologies – together with its international partners – to build its production capacity, by its strong commitment to developing the necessary skills and capabilities for the future, and by its consistently statesmanlike role in global energy markets. I have no doubt that this leadership will continue,” he added during his lecture on Wednesday night.

He told the packed gathering that energy industries would be transformed over the first half of this century and the change would be very challenging.

“How it occurs will depend on choices – by governments, companies and customers. Recent Shell scenarios to 2050 look at two possible ways. In the Scramble scenario, countries seek their own short-term solutions – particularly in securing energy supplies – while action on energy efficiency and CO2 emissions is put off.

In the Blueprints scenario, he explained, a more cooperative and forward-looking approach brings early international agreement on market measures to promote efficiency, emissions reduction and technology transfer. Oil and gas remain an essential part of global energy supplies in both scenarios, although production is higher in Blueprints. CO2 emissions are significantly lower in Blueprints – with widespread introduction of carbon capture and sequestration (CCS) technology to cut emissions from power generation.

“Major producing countries like Abu Dhabi have a key leadership role: in maintaining vital oil and gas supplies, in driving the development of new technologies, and in helping to establish the global conditions necessary for progress,” he indicated.

“The way the world’s energy systems develop is of vital interest for both Abu Dhabi – which is, and no doubt will remain, a leader in world energy matters – as well as for Shell,” he maintained.

“And, we have to win that new production from increasingly difficult resources – smaller accumulations, in more complex geology or harsher conditions, that are more difficult to produce or get to market – all requiring new technologies, better capabilities and greater investment.

“Challenges here in Abu Dhabi, for example, include commercialising sour gas contaminated with H2S and applying enhanced oil recovery techniques to produce more from heavy oil fields”, he added.

“CCS has the potential to be a practical and effective way of dealing with these emissions. I say potential because – while there has been considerable work on the technology – the world has almost no experience of applying CCS on a commercial scale.

“Commercialising this technology is a challenge for industry, and for governments. It is one that I know Abu Dhabi is responding to as part of the Masdar Initiative – with the aim eventually of reducing UAE CO2 emissions by almost 40 per cent and increasing oil recovery by an additional 10 per cent through injecting some of that CO2 in new enhanced oil recovery schemes.

“A Scramble scenario would be a turbulent, risky and ultimately unsustainable world. A Blueprints approach would offer a better long-term basis for sustaining the use of hydrocarbons for energy and chemicals, and for building economies and maintaining global growth. And, I believe that major producers like the United Arab Emirates will play an increasingly important leadership role in such a world.

There are, however, a couple of other areas where he believes the UAE could also play a vital role in leading the global energy industry.

“The first would be in recognising how biofuels can complement hydrocarbon fuels in beating the challenge of electric vehicles to provide more environmentally-friendly vehicle transportation. The second relates to my earlier comments about why the introduction of CCS in coal-fired power stations is so important,” he said.

This, he added, would not happen unless the sequestered carbon is given a market value through cap and trade mechanisms. And it needs to happen soon because of the rapidity with which coal fired power stations – without CCS – are now being built.

Meeting the world’s energy challenges will depend on harnessing all the capabilities we have available: breakthrough technologies, skilled people and capable organisations, and huge financial resources.

“Abu Dhabi has consistently followed a strategy of utilising the knowledge and capabilities of international oil companies as partners in its energy industries. Likewise, Masdar is also based on cooperation with international partners. This is the Blueprints ethos, and – as I have discussed – the best hope for our world. It is another example of Abu Dhabi’s capacity to lead.

“In Shell, we’re very proud to play our part in supporting Abu Dhabi’s progress, helping to turn His Highness’s vision into reality,” he concluded.

(WAM)

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