The advance in AI and the surge in data center build-out have pushed global energy investment needs to $4 trillion annually, Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC chief executive, said on Monday.
Large oil producers have been warning for years that investment in supply needs to rise to meet constantly growing global energy demand. Now the new AI age requires even more investment in energy supply and grids, Al Jaber said today in his opening address to the ADIPEC energy conference in Abu Dhabi.
Al Jaber said “you can’t run tomorrow’s economy on yesterday’s grid” as he noted that the world needs $4 trillion in annual capital investment in grids, data centers, and all sources of energy.
At the start of ADIPEC, the UAE’s top officials, including Al Jaber, called on energy industry leaders, policy makers, and investors “to follow the UAE’s lead and drive pragmatic policies and bold partnerships, to boost job creation, socioeconomic growth, and global competitiveness.”
“While we may face headwinds in the months ahead, the long-term outlook shows demand growth for every form of energy across every market,” Al Jaber said, referring to the expected glut in the near term.
Set OilPrice.com as a preferred source in Google here.
“Our response to meet that demand should focus on the data, not the drama,” the official added.
With power demand surging, 1.5 billion people expected to move to cities by 2040, and a surge in air travel, “renewables will more than double by 2040; LNG will grow by 50 percent; jet fuel will increase more than 30 percent and oil will stay above 100 million barrels per day beyond 2040, increasingly used not just for mobility, but more and more for materials,” Al Jaber said.
“Most importantly, policy must enable progress, not obstruct growth,” he added.
Al Jaber’s view is shared by Saudi Aramco and OPEC officials, who warn that underinvestment could create oil supply shortages in the long run.
By Michael Kern for Oilprice.com
More Top Reads From Oilprice.com
- U.S. Sanctions Force Lukoil to Divest Global Holdings
- Indian Refiners Pivot Away From Russian Oil
- ExxonMobil Threatens To Leave EU Over Sustainability Rules
