Observers confirm that overall crude oil production levels remain well below pre-war levels, with actual production falling by approximately 7.3 million barrels per day—a 28% decline compared to February.
Amid this global crisis that has shaken global markets, the United Arab Emirates has been able to ship oil through the Strait of Hormuz, surpassing exports of any other commodity over the past two months to provide additional supplies that have helped ease pressure on global markets amid a historic energy crisis and the disruption of maritime traffic in the region, according to Bloomberg.
According to Kepler, the oil tanker Romania Prosperity appeared in the Gulf of Oman last Tuesday, loaded with ADNOC crude, after its transceiver stopped operating in late July. This tanker is one of dozens of ships that have managed to leave the Gulf recently, as part of an unprecedented marketing and logistics strategy adopted by ADNOC to maintain the flow of its exports despite the risks surrounding the Strait of Hormuz.
The agency’s report noted that the continuity of export operations depended on a series of operational and security measures, including the use of additional tankers, the transfer of cargo between ships in the Gulf of Oman after crossing the strait, and the use of the pipeline that transports oil directly out of the Strait of Hormuz, thereby reducing reliance on maritime traffic in the most sensitive areas.
Some oil tankers also resorted to temporarily disabling automated identification systems during transit, a practice described by the report as a precautionary measure in areas of maritime tension.
Sale of Tens of Millions of Barrels
Since early June, ADNOC has sold more than 130 million barrels of crude oil through seven unprecedented auctions, according to Bloomberg, traders familiar with the operations who asked not to be identified because they are not authorized to speak publicly. This amount is equivalent to more than a full month’s worth of oil demand in Japan, Asia’s third-largest energy consumer.
The agency notes that the measures adopted by ADNOC helped reduce supply losses resulting from the war and helped calm oil markets, which had been bracing for greater shortages and sharper price increases. According to market data, the global benchmark Brent crude traded near $79 per barrel last Thursday.
According to data from Fortexa, Asian refineries have absorbed most of these barrels, particularly in Japan and China, as a large number of refineries in the region rely on medium and heavy sour crudes produced in the Middle East.
“ADNOC’s barrels have contributed to the stability of supply to Asia,” John Goh, a senior oil market analyst at Sparta Commodities, told Bloomberg. “Refineries in the region cannot easily replace the medium-sour crudes typically produced in the Middle East, which makes every shipment that can leave the Gulf of great importance to Asian buyers,” he added.
The agency noted that the United Arab Emirates’ efforts were not limited to crude oil, as the country was also able to deliver vital shipments of liquefied natural gas to its customers in global markets. ADNOC’s gas tanker Mubarez finally appeared near India after halting its transit within the Gulf over the past month, according to vessel tracking data. This suggests that transportation mechanisms are being used in much the same way to maintain LNG exports.
Electric safety valve
According to the Eurobian Business Review, “the United Arab Emirates has become a reliable global partner in the energy sector as it works to build a diversified energy portfolio, combining the strengthening of its position in the traditional oil and gas sector with heavy investment in renewable energy and digital technologies, with the aim of achieving long-term value across various areas of the energy sector.”
It added in a report that the United Arab Emirates witnessed, within a few weeks, a series of energy-related announcements, including progress by the Abu Dhabi National Oil Company (ADNOC) on major oil and gas initiatives, the expansion of Masdar’s global renewable energy portfolio, as well as European approvals for multibillion-dollar joint ventures, and the strengthening of the presence of UAE-backed investors in power infrastructure and digital energy technologies.
He noted that “oil and natural gas remain a key pillar of the global energy system, especially with the continued growth in demand in Asian markets,” adding that “the United Arab Emirates has strengthened its position as one of the world’s most reliable energy suppliers, through investments in production, exports, natural gas development, and international partnerships.”
He said that a large part of these efforts is centered on ADNOC, which in June expanded its crude oil sales to refineries in India, China, Japan, and South Korea, explaining that this move reflects continued confidence in the United Arab Emirates’ oil supplies at a time when energy security has become a priority for importing countries.
The United Arab Emirates uses a 235-mile pipeline linking the Habshan field to the port of Fujairah on the Gulf of Oman with a capacity of approximately 1.5 million barrels per day, while construction of a second line to Fujairah and the expansion of ports in the Gulf of Oman are underway, as part of a trend aimed at achieving zero dependence on the Strait of Hormuz. Meanwhile, Saudi Arabia is considering expanding pipeline capacities toward the Red Sea and cooperating with Kuwait to accommodate part of its exports.
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