Diversifying the energy mix in the heart of the oil world

摘要

A shift in mind-set is needed towards seeing energy resources as valuable and limited, however abundant our remaining reserves are. For natural gas specifically the UAE, as a net importing country with growing production costs, can no longer think of natural gas as a cheap resource. Demand for gas is rising much faster than new reserves can be exploited; new reserves are more expensive; and LNG import costs are even higher. So, as we assess new options (such as nuclear, renewables, and energy efficiency) with this new economic reality in mind, many are now highly attractive, as is a shift towards using reverse osmosis desalination, which uses much less energy. This trend is one that will affect many countries in the region. The UAE is unusual in having spotted this trend early and made major investments early on to develop alternatives. In that sense, it is establishing a model that will inform changes across the region. We are being helped in making this transition by rapid improvements in critical technologies such as solar PV and reverse osmosis desalination, neither of which was attractive in the Gulf region five to ten years ago, but both of which are now technologies of choice. But above all, we have benefited from strategic, long-term thinking at the highest levels, which has allowed us to build the capacities to participate in innovation as well as to make appropriate investments. This strategic thinking has put the UAE in a good position to benefit from the dynamic changes taking place in the energy sector.