Towards a more Secure, Affordable, and Sustainable #FutureofEnergy

In 1984, when the first Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), organised by ADNOC, was held, the world was a different place. So was the world’s energy supply chain. A transformational shift was being shaped by several actors: The fallout of the 1970s energy crisis had slowed down global economic activity. Oil price peaked at USD 35 in 1981, and as The New York Times proclaimed, “the oil glut… is here,” with several non-OPEC oilfields coming to life, and the erstwhile Soviet Union taking the mantle of the world’s largest oil producer.

Nearly four decades later, as the world’s energy leaders convene in Abu Dhabi for #ADIPEC2022, that dictum of ‘everything changes, but nothing changes’ becomes even more relevant. Once again, the developed West is facing an energy crisis. The clamp on Russian oil and OPEC+’s steep production cuts have the world divided. Recently, OPEC’s de-facto leader Saudi Arabia said the cut of 2 million barrels of oil per day (boepd) was necessary to respond to rising interest rates in the West and a weakening economy. Simultaneously, the Group of Seven (G7) richest economies aim to have a price-capping mechanism on Russian oil exports in place by December 5, when European Union sanctions banning seaborne imports of Russian crude come into force. Ironically, in this mayhem, adjusted for inflation, the price of oil, which is now at USD 100-plus is not much different from the 1980s.

While geopolitical differences prevail, there is, however, the consensus among all parties – the developed, developing and less-developed nations – that the world needs a compelling, effective energy transition strategy. That sentiment will echo stronger a few days after ADIPEC at the UNFCCC’s 27th Conference of the Parties (COP 27) at Sharm El-Sheikh in Egypt when climate talks will take centre stage in the global agenda. That is why as our delegation arrives at ADIPEC, we believe that the complexities of the energy sector need actionable and tangible solutions.?

This is effectively captured in ADIPEC’s theme this year - ‘The Future of Energy: Secure, Affordable and Sustainable’ – which resonates strongly with our own vision for an energy-secure India and approach at this global event. We share ADNOC and the UAE’s energy transition outlook that the world needs a new strategy that is pro-growth and pro-climate. As H.E. Dr. Sultan Al Jaber, UAE’s Minister of Industry and Advanced Technology and Managing Director & Group CEO of ADNOC Group , observed: “A successful energy transition must be built on progress for the economy and the climate together. The strategy needs to appreciate the complexity of energy and industrial systems…. requiring greater alignment and collaboration on everything from capital allocation to product design, public policy, and behavioural change.”

At Cairn Oil & Gas, we are doing just that – as the largest private oil and gas exploration and production company in India, we have been aggressively investing and using the most advanced technologies for efficient, low-carbon energy production.

We are doing this through multiple pathways. First, we are emphasizing the potential of unconventional fuels like shale that carry the opportunity to revolutionize energy security. Simultaneously, we are growing our gas assets in line with the Prime Minister’s vision to make India a gas-based economy by 2030 and serve millions of households with safe and secure fuel for their everyday needs. We remain firm on building on our commitment to doubling production capacity to contribute 50% to India’s domestic crude oil and gas production and assisting the country in its goal of achieving energy autonomy (aatmanirbharta). Our goal to enable energy security for India aligns well with ADNOC’s stated objectives of coalescing energy transition with economic growth and progress.?

We have also been investing significantly in delivering on our environment, social and governance (ESG) goals with the goal of being Carbon Net Zero by 2050. We see strong synergies in this approach with the UAE, one of India’s largest trading partners.

Last year, just before COP26, the UAE announced Net Zero by 2050 Strategic Initiative, and India affirmed its ‘panchamrita’ to be Net Zero by 2070 and cut the carbon intensity of the economy, reduce projected carbon emissions by 1 billion tonnes and meet half of its energy requirements from renewable sources by 2030.

This needs collective effort – and that has been our fundamental driver at ADIPEC in the past years. In 2021, built on our power of partnerships through strategic agreements such as with 哈里伯顿 and 贝克休斯 to accelerate shale exploration as well as to increase recovery and production from existing fields, with greater efficiency and lower emissions.

This year, we are even more upbeat, despite the global headwinds that the energy sector faces because we are resolute in our quest to be a responsible energy leader – and we believe in the developing world’s ambition to ‘hold back emissions, not progress’.