“Revenues from oil and gas and [oil] products constitute 35% of Abu Dhabi’s gross domestic product, 80% of the government’s revenues and 90% of the total exports,” according to the Abu Dhabi Economic and Social Report 2008. The emirate’s current oil production capacity is 2.7 million bpd, the report said.
Abu Dhabi’s production accounts for nearly 94% of the UAE’s crude output. The UAE’s oil output currently is about 2.66 million bpd. The country’s proven oil reserves of 97.8 billion barrels make up 7.9% of the world’s total reserves. The official selling price (OSP) of Abu Dhabi crude oil grades from January to June this year averaged $108.32 per barrel, a whopping 73.6% rise on the year and in line with soaring global oil prices. The average price of Adnoc’s crude grades for January-June 2007 was $62.39.
According to the Abu National Oil Company, the official selling price of its crude grades – Murban, Lower Zakum, Umm Shaif and Upper Zakum – averaged $135.68 for July 2008 on the back of a record performance that peaked on July 11, when prices on the international market touched of $147.27 a barrel. Since then, prices have fallen sharply to below $120 a barrel, as an economic downturn in the US, the world’s biggest oil importer, has slowed consumer demand.
Estimates by McKinsey & Company show that Abu Dhabi is likely to accumulate an investible surplus of $800 billion by 2020 due to massive inflows of oil revenues. They say that of the $2 trillion investible surplus flowing to the six Gulf countries, $800 billion will come to Abu Dhabi. This is based on an estimated average price of $50 per barrel between 2005 and 2020.
WINDFALL
Should the price momentum of the first-half of the year sustain in the H2, the UAE’s export revenues are poised to race past the $100 billion mark in 2008. According to the UAE Central Bank, the country’s oil exports in 2007 were valued at 261.42 billion dirham ($71.2 billion), up 22.5% on year. The average price of the UAE’s crude in 2007 was $71.70 per barrel, 12.9% higher than the 2006 price of $63.53.
The UAE’s oil will last 92 years at current production levels, estimates show. Estimates of International Energy Agency show the UAE’s sustainable crude production capacity could rise 9.12% to 3.11 million bpd by 2013. (Gulf News)
