A Market on the Rise: USD 12.59 Billion by 2030
The UAE oil and gas market is headed for a significant expansion, reaching USD 12.59 billion by 2030, growing at a CAGR of 5.2%. This upward trajectory is propelled by major capital investments, enhanced exploration methods, and a surge in natural gas demand. However, the nation’s growing commitment to renewable energy initiatives may introduce complexities to traditional upstream operations.
Abu Dhabi: The Powerhouse with 96% of UAE's Oil Reserves
For decades, Abu Dhabi has anchored the UAE’s oil economy, holding 96% of the country’s 100 billion barrels of proven reserves. The emirate consistently produces 3.2 million barrels of petroleum per day, a number that solidifies its ranking among the world’s top oil suppliers. In 2022 alone, the UAE contributed 4.02 million barrels per day, securing a 13.07% share of total Middle Eastern oil production.
Onshore Exploration Gains Momentum with EOR Techniques
As existing oil fields mature, companies are shifting their focus toward onshore expansion and advanced recovery methods. China Petroleum Engineering and Construction (CPECC) recently inked multiple agreements with ADNOC Onshore, aiming to boost production in Abu Dhabi’s aging fields. These developments signal a strategic push to maximize crude extraction through Enhanced Oil Recovery (EOR) techniques, ensuring sustained output for the long run.
ADNOC's USD 150 Billion Strategy to Reinvent UAE’s Oil Industry
No name is more synonymous with UAE’s upstream dominance than Abu Dhabi National Oil Company (ADNOC). In a landmark move, ADNOC announced a USD 150 billion investment to accelerate its 5 million barrels per day production target by 2027. A significant portion of this capital—USD 48 billion—will funnel into its In Country Value (ICV) program, reinforcing local economic participation while securing long-term oil profitability.
UAE’s Natural Gas Sector Surpasses 58 Billion Cubic Meters
Beyond crude oil, the UAE has cemented its position in natural gas production, reporting an output of 58 billion cubic meters in 2022, an increase from 54.3 billion cubic meters in 2017. With LNG demand rising, ADNOC has launched new offshore tender processes, including high-value contracts for the multibillion-dollar Hail & Ghasha sour gas development. These initiatives align with the UAE’s strategy to maintain energy security while expanding its global footprint in gas markets.
The Competitive Landscape: Key Players Driving UAE’s Upstream Sector
The UAE oil and gas market operates within a semi-fragmented ecosystem, led by industry giants such as ADNOC, Exxon Mobil, BP PLC, Emirates National Oil Company Group, and TotalEnergies SE. This dynamic blend of domestic leadership and international partnerships continues to shape the industry’s resilience amid evolving global energy demands.
Also Read: Abu Dhabi’s Renewable Energy Boom: A Market Research Perspective
