UAE's ADNOC advocates for $4 trillion annual energy investment and AI-driven transformation at ADIPEC

At the 41st edition of the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), which was held under the auspices of ADNOC, Dr. Sultan Ahmed Al Jaber, the UAE’s Minister of Industry and Advanced Technology as well as ADNOC’s Managing Director and Group CEO, took the stage to deliver a keynote address. He highlighted, quite importantly, the urgent need for practical energy policies that are supported by hefty investments in infrastructure. His speech painted a broad picture of the challenges and opportunities facing the global energy scene, emphasizing that a hefty $4 trillion per year investment is necessary to sustain the future energy economy.

Dr. Al Jaber’s message was pretty clear: the key is for pragmatic, partnership-focused energy strategies that boost economic resilience, bring about jobs, and advance technology. He made a strong case for policymakers and industry players to steer clear of ideological rigidity. Instead, he advocates for approaches grounded in realism and market viability—”pragmatic, not performative, based on insight, not ideology,” he said. From his perspective, policies that ignore economic practicality could actually destabilize economies and scare off private investors. The UAE, apparently, has navigated this path successfully by establishing itself as a trustworthy and well-regulated investment environment.

A big chunk of his speech focused on the transformative power of technology, especially artificial intelligence (AI). He pointed out ADNOC’s own extensive digital transformation efforts, mentioning that the company has rolled out over 200 AI applications via its internal AI program, AIQ. These applications have already reduced unplanned shutdowns by 50% and aim to improve production forecasts by as much as 90%. Dr. Al Jaber described ADNOC’s ambition to become the most AI-native energy provider in the world, illustrating how AI and robotics are fundamental in shrinking operational timescales and broadening the value chain within energy development and delivery.

Given the volatile market conditions, he emphasized the importance of sticking to long-term trends—particularly the solid, sustained demand for energy—even amidst short-term fluctuations. He called for a careful balancing act: maintaining cost discipline while also making strategic investments. He also stressed operational efficiency and the importance of workforce development—stuff that really keeps the gears turning.

A major part of his talk centered on the scale of investment needed to modernize and grow the world’s energy infrastructure. He pointed out that globally, around $4 trillion a year is necessary—not just for traditional power grids but also for expanding data centers and developing cleaner and more evolving energy systems. He warned that “you can’t run tomorrow’s economy on yesterday’s grid,” obviously highlighting just how urgent infrastructure development is, especially with electricity demand expected to skyrocket by 2040. This growth will be driven by rapid urbanization and increased reliance on technologies like air conditioning and data centers. Plus, demand in sectors like aviation is projected to double its fleet size during that period.

He also emphasized that the energy transition isn’t straightforward. On the one hand, renewables are set to grow, but on the other, the demand for liquefied natural gas (LNG), jet fuel, and oil will stay strong. In fact, oil consumption is expected to remain above 100 million barrels a day well past 2040. It’s a reminder of the complex challenge of balancing energy security while pushing for cleaner tech solutions.

Supporting this future growth, he highlighted the need for at least six million kilometers of new transmission lines by 2050. This would help mitigate investment risks and facilitate flow of capital into critical infrastructure projects. These developments, he tied into the UAE’s broader policy approach—aimed at ensuring good returns on investments through sound governance and transparent legal frameworks.

He also painted a picture of the UAE as a secure and appealing global hub for energy investments. The country, he said, offers stability and a welcoming environment for big partnerships. Citing ADNOC’s international ventures, he mentioned completed gas deals in various countries and ongoing expansion in chemicals. Moreover, the UAE isn’t just investing locally; recent plans show the UAE intends to ramp up energy investments in the U.S. up to $440 billion by 2035—way up from the current $70 billion. This is all part of a broader $1.4 trillion commitment over ten years, covering energy, AI, and advanced manufacturing—clear proof of the UAE’s ambitions to lead globally in energy transition and innovation.

Throughout his speeches at ADIPEC and other key forums like CERAWeek, Dr. Al Jaber consistently advocates for a diverse energy mix—combining oil, gas, renewables, and nuclear—to ensure energy security, advance sustainability goals, and benefit from breakthrough technologies, especially AI, which could truly transform the industry.

In essence, his call to action recognizes the enormous scale of investments and innovations needed to meet the ever-evolving energy demands. It also underscores the importance of practical, actionable policies. As urban centers grow and technology spreads, the global energy landscape is poised for significant change. Navigating this shift will demand big money, extensive infrastructure upgrades, and smart technological integration—plus governance frameworks that foster trust. The UAE, through ADNOC and its government, is positioning itself right at the heart of this transformation, pushing for bold partnerships that can lead to a more sustainable, resilient energy future.

Source: Noah Wire Services