UAE discovers 22 billion barrels worth of onshore ‘unconventional’ oil resource

UAE discovers 22 billion barrels worth of onshore ‘unconventional’ oil resource
UAE Minister of State and ADNOC Group CEO, Sultan Ahmed al-Jaber, speaks during the Abu Dhabi International Petroleum Exhibion and Conference (ADIPEC) on Nov. 13, 2017. (File/AFP)
Short Url
Updated 23 November 2020

UAE discovers 22 billion barrels worth of onshore ‘unconventional’ oil resource

UAE discovers 22 billion barrels worth of onshore ‘unconventional’ oil resource
  • The announcement also reported an increase in conventional oil reserves of 2 billion barrels
  • The Supreme Petroleum Council (SPC) has also approved the firm’s capital expenditure (CAPEX) plan

DUBAI: An onshore unconventional oil source with 22 billion recoverable barrels has been discovered, the Abu Dhabi National Oil Company (ADNOC) has announced.

The discovery of new oil sources “is a testament to ADNOC’s relentless efforts to unlock and maximize value from the UAE’s hydrocarbon reserves for the benefit of the nation,” Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed said in a statement.

The announcement also reported an increase in conventional oil reserves of 2 billion barrels.

The Supreme Petroleum Council (SPC) has also approved the firm’s capital expenditure (CAPEX) plan of $122 billion for smart growth in 2021-2025, through which ADNOC aims to channel $43.6 million back into UAE’s economy by nurturing local and international partnerships and business opportunities will which create new jobs for Emiratis.

“Following the SPC’s approval of ADNOC’s CAPEX, we are well-positioned to continue driving long-term and sustainable value for the UAE while creating opportunities for local businesses and private-sector jobs for Emiratis through our in-country value target,” ADNOC’s CEO Sultan Ahmed Al-Jaber said.


Market traders ready to ride ‘Biden bounce’

Market traders ready to ride ‘Biden bounce’
Updated 47 min 34 sec ago

Market traders ready to ride ‘Biden bounce’

Market traders ready to ride ‘Biden bounce’
  • "Biden moving into the White House could drive markets into a bull run more sharply than previous inaugurations," a financial expert says

DUBAI: Investors are expecting a “Biden bounce” in global markets following the inauguration on Wednesday of Joe Biden as the 46th US president.

“History teaches us that we can expect the markets to react favorably to the inauguration of a new US president — and this time around it is likely to be no different,” said Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisers, with over 80,000 clients and $12 billion under advisement.

“Indeed, Biden moving into the White House could drive markets into a bull run more sharply than previous inaugurations because it is hoped the incoming administration will bring stability and, possibly, a halt to the uncertainty following the fiercely contested election. 

“Investors will also be buoyed by the $1.9 trillion fiscal stimulus announced by Biden, the Federal Reserve’s willingness to support markets, the new president’s multilateral trade agenda and his plans for stepping up the vaccine rollout. All of this will encourage confidence and optimism,” Green said.

Mazen Al-Sudairi, head of research at Riyadh-based financial services company Al Rajhi Capital, agreed with the optimism regarding a “Biden bounce.”

“One of the important outcomes with Biden is stability in the market. But there is also the stimulus factor coupled with the vaccine that is giving an indication of recovery in the market. This perceived unity in the US will be healthy for the global and Saudi market,” he told Arab News.

However, Green said that investors should be cautious for three reasons: “First, a market rally is going to be difficult to sustain indefinitely due to the enormous economic scarring caused by the pandemic.

“The major long-term headwind is mass unemployment, which is hitting demand, growth and investment on Main Street and which, ultimately, will have to impact Wall Street.

“Second, the new administration will have policies that will have an effect on different sectors of the economy. There will be a readjustment period that needs to be taken into account.

“And, third, not all shares are created equal and stock markets are heavily unbalanced at the moment. A handful of sectors are bringing up entire indexes,” he said.