Amin Nasser, CEO of Saudi Aramco, advocated for increased investment in fossil fuels over renewables at the Saudi Green Initiative event during the COP28 UN climate summit in Dubai. He highlighted the current and anticipated growth in oil demand, contrasting with the views of climate activists. Nasser dismissed the short-term viability of renewables and hydrogen due to higher costs and low demand. Despite this, Saudi Aramco is working towards increasing oil production capacity and achieving net-zero emissions by 2050, with investments in carbon capture, renewables, and hydrogen.

Crude oil production in the Neutral Zone shared by Saudi Arabia and Kuwait increased to 264,000 barrels per day in October, the second highest in the year, following the Khafji oil field's restart. Production had dropped to 180,000 barrels per day in September due to a fire in August. Exports to China, which have more than doubled year-to-date, reached 117,000 barrels per day in October. Saudi Arabia and Kuwait aim to boost output and capacity in the Neutral Zone, with potential production reaching 300,000 barrels per day by the end of next year. Restoring capacity to pre-dispute levels of 500,000-600,000 barrels per day is expected to take over five years due to infrastructure overhauls and facility transfers.

The Baystar petrochemical plant in Texas, a joint venture between Borealis and TotalEnergies with a production capacity of 625,000 mt/year of polyethylene, is commencing operations after four years and a $1.4 billion investment. Despite an oversupplied market, Borealis CEO Thomas Gangl anticipates demand growth, particularly for plastic components in new energy and automotive applications. He notes current low operating rates in Europe and challenges such as COVID-19, high natural gas prices, and China's structural issues. The market is expected to improve in the latter half of the next year, with 2025 looking more favorable.

Saudi Aramco has acquired a minority stake in US-based LNG company MidOcean Energy for $500 million, marking its first institutional investment in the LNG sector. Aramco's CEO Amin Nasser highlighted the importance of gas in the global energy transition. MidOcean Energy, managed by EIG, is expanding its LNG business by acquiring interests in four Australian projects. The deal is pending regulatory approvals.

Kuwait's Al Zour refinery has become the primary supplier of ship fuel to Qatar, surpassing Bahrain, Malaysia, and Singapore with exports including fuel oils, jet fuel, diesel, naphtha, and gasoline. In 2023, Al Zour shipped approximately 3 million barrels of fuel oil to Qatar. The refinery, which began exporting various fuels in November, is expected to reach a production capacity of 615,000 barrels per day by year's end. Kuwait also aims to double its jet fuel exports to Europe and contribute to an increase in Middle East refinery runs. The Clean Fuels Project has further modernized Kuwait's refinery capacity, producing clean products that meet Euro-4 and Euro-5 specifications.

Saudi Arabia has reduced its crude production to defend oil prices, impacting its market share in Asia as Russia and Iran increase their output. Despite a price floor around $75/b, Saudi Arabia may need to maintain or further cut its low output levels. The OPEC+ alliance, co-chaired by Saudi Arabia and Russia, is considering another round of cuts to support prices. Saudi Aramco's official selling prices (OSPs) have been cut to incentivize buyers, but the strategy's effectiveness is uncertain. Global oil demand is expected to outpace non-OPEC supply growth, and OPEC+ quotas are adjustable. Saudi Arabia's production restraint has allowed Russia to become the top exporter to China, and the UAE's quota increase may further affect Saudi market share. Aramco's OSP cuts aim to ensure sales of its targeted production, signaling a competitive stance but not a shift from price to volume strategy.

Chevron is relocating its Wafra field headquarters and vital infrastructure to Khafji in the Neutral Zone, a region shared by Saudi Arabia and Kuwait, with a target occupation date of January 2026. This move is part of a 2020 agreement to restart production in the area. The transition, including the construction of schools, hospitals, pipelines, storage tanks, and potentially an export terminal, is expected to take time, with full restoration of production capacity to 500,000-600,000 barrels per day anticipated to take at least five years. Current crude output from the Neutral Zone is about half of the pre-2015 dispute levels, with potential to reach 300,000 barrels per day by the end of the next year.

Strong European demand for US crude oil is driving up dirty tanker prices, with rates increasing significantly on regional Aframax routes and for Very Large Crude Carriers. A heat wave in Texas is causing record power prices due to high temperatures and lower wind generation. A smaller-than-expected natural gas storage build could lead to a recovery in US natural gas futures. The US faces a supply glut of high-sulfur petcoke due to a shift from low-sulfur Russian crudes to heavier Canadian crudes, while China has reduced its US petcoke imports in favor of Venezuelan supplies.

On March 20, Saudi Arabia's Yanbu Aramco Sinopec Refining Co. (Yasref) refinery was hit by a drone attack, leading to a temporary reduction in production, which will be compensated from inventory. The attack occurred early in the morning and targeted various facilities, including Aramco's liquefied gas plant and an electricity transmission station. The Saudi Air Force successfully intercepted and destroyed weapons aimed at several cities. The Houthi militant group has been involved in missile and drone attacks into Saudi Arabia and the UAE, posing significant oil security risks. The Gulf region experienced a record number of security incidents in 2021, highlighting the ongoing conflict and its implications for maritime traffic and environmental safety in the Red Sea.

ADNOC is aiming to establish a joint venture for green hydrogen investments by the end of the year, involving key UAE state-backed entities such as Taqa, Masdar, and Mubadala Investment Company. The venture plans to install over 50 GW of capacity by 2030, aligning with the UAE's goal to reach net-zero emissions by 2050. The focus is on green and blue hydrogen, with ADNOC planning to increase blue hydrogen production and develop a blue ammonia plant. The venture will also explore international investments and supply chains for clean fuel.

Saudi Aramco and China's state-owned Sinopec are conducting a feasibility study on expanding the capacity of the 280,000 b/d Fujian refinery. The study aims to optimize refinery feedstock and support downstream petrochemical development. This move is part of Saudi Aramco's strategy to secure demand for its crude in China, which is the largest economy in Asia. The companies are also revisiting a joint project to build a refining and petrochemical complex in Northeast China, initially agreed upon during Crown Prince Mohammed bin Salman's visit to Beijing in February 2019. Oil prices have surged to their highest since 2008, with Saudi Arabia being China's top crude supplier in 2021.

Dubai aims to reduce carbon emissions by 30% by 2030, contributing to the UAE's goal of net-zero emissions by 2050. The Supreme Council of Energy, led by Saeed Al Tayer, is developing a roadmap to achieve carbon neutrality, which includes large-scale renewable energy projects like the Mohammed bin Rashid solar park. The emirate plans to diversify its energy sources, moving away from gas, and has announced the conversion of the Hassyan 'clean coal' power plant to run on natural gas.

S&P Global Platts launched the first suite of prices in the Middle East to track the daily cost of hydrogen production, covering various production methods and countries in the region. The Middle East is investing heavily in hydrogen as an alternative fuel, with the UAE and Saudi Arabia prioritizing its development. The UAE aims for net zero emissions by 2050 and plans to invest $160bn in renewable energy. Blue hydrogen production is cost-competitive in the region, with Adnoc and Saudi Aramco developing projects. Platts' price assessments indicate regional differences in production costs, influencing potential global trade routes for hydrogen.

The US, alongside other major oil-importing countries, released millions of barrels of strategic oil reserves, causing uncertainty in the markets. Oil prices initially surged, with Brent crude rising 3.5% and West Texas Intermediate up 2.65%. The US plans to release 50 million barrels, with other countries contributing smaller amounts. Market analyst Jeffrey Halley commented that the release will not significantly impact oil prices. Attention now turns to OPEC+'s upcoming meeting to discuss their supply strategy.

The UAE, Jordan, and Israel have signed an agreement to develop a renewable energy and desalination facility in Jordan to combat climate change and promote clean energy growth. The project includes 600 megawatts of solar photovoltaic plants in Jordan to export electricity to Israel and a desalination program in Israel to supply Jordan with water. The initiative is supported by the UAE's renewable developer Masdar and aligns with the countries' commitments to carbon neutrality by 2050. The agreement, witnessed by US envoy John Kerry, is a result of the Abraham Accords and aims to enhance climate security and regional peace.

Abu Dhabi National Oil Company and ADQ have partnered with Mitsui and GS Energy to develop a blue ammonia project in Ruwais, with Ta’ziz and Fertiglobe. The project aligns with ADNOC's commitment to low-carbon hydrogen and ammonia production. Fertiglobe is constructing a plant with a capacity of 1,000 kilotonnes per year. The Gulf region is focusing on hydrogen as a cleaner fuel for decarbonization, with ADNOC forming a hydrogen alliance and planning to increase its hydrogen output. Mitsui and GS Energy will offtake blue ammonia to meet demand in Japan and South Korea. Saudi Aramco is also developing blue and green hydrogen for export to Asia.

Adnoc Distribution's net profit for the first nine months of 2021 increased by over 6% to Dh1.68 billion, driven by a recovery in fuel volumes and the easing of travel restrictions. Despite a 21% drop in third-quarter net profit, the company's revenue rose and expansion continued with new fuel stations in the UAE and Saudi Arabia. Adnoc Distribution was also included in the MSCI and FTSE Emerging Markets indices.

UAE Minister of Energy and Infrastructure Suhail Al Mazrouei warned that low investment in fossil fuels could prolong the cycle of high oil prices, as seen with coal and gas. He praised the Opec+ alliance for stabilizing oil prices and ensuring supply security during the energy transition. Al Mazrouei emphasized the importance of balanced investment in both fossil fuels and renewable energy to avoid price hikes that could hinder renewable projects. The UAE aims to achieve carbon neutrality by 2050 and plans to have 50% of its energy mix from renewables by then.

Global power consumption is expected to increase into 2023, with Asia leading the growth, particularly in China, India, and Indonesia. This rise is attributed to strong demographic and macroeconomic fundamentals, as well as industrial development. The International Monetary Fund projects emerging market and developing economies to grow 6.4% in 2021, with China and India at 8% and 9.5%, respectively. India's power demand is expected to rise due to the Make In India initiative, although Fitch Solutions notes potential delays in government infrastructure projects.

Opec+, led by Saudi Arabia and Russia, agreed to increase oil output by 400,000 barrels per day in December, maintaining their previous plan despite US pressure to boost supply further. The decision, which aims to bring 2 million bpd back to markets by year-end, resulted in a rise in oil prices, with Brent reaching $82.61 per barrel and West Texas Intermediate at $81.13 per barrel. US President Joe Biden and Energy Secretary Jennifer Granholm have criticized Opec+ for not increasing production more significantly to address rising oil prices and economic recovery concerns. The next Opec+ meeting is scheduled for December 2, and the group is in discussions with the US and key importers to ensure a smooth post-pandemic recovery.

The International Monetary Fund has proposed a differentiated carbon price floor based on a country's level of development to contain carbon emissions. Kristalina Georgieva, the head of the IMF, emphasized the need for equitable pricing, with lower prices for low-income countries and higher for richer economies. The IMF suggests a minimum price of $75 per tonne to limit global warming to 1.5°C above pre-industrial levels. India's Prime Minister Narendra Modi has called for developed nations to contribute more to climate finance. An international carbon price floor could reduce emissions by 12.3% by 2030 and impact GDP by less than 1%, which is minimal compared to the potential 18% shrinkage of the global economy if temperatures rise more than 3°C.

Opec+ is scheduled to meet to discuss the possibility of increasing oil supply as prices reach multi-year highs. The group faces pressure from the US to help lower prices, but some members, including Saudi Arabia, believe the market is well supplied. The US's stance is seen as contradictory to its climate change leadership goals at Cop26. Analysts have varying opinions on whether Opec+ will increase production quotas. High oil prices are expected to continue, with Brent forecasted to trade above $80 a barrel into 2023.

Dubai Electricity and Water Authority (Dewa) is set to be listed on the Dubai Financial Market in the coming months, as announced by Sheikh Maktoum bin Mohammed. This move is part of Dubai's strategy to expand its financial market to Dh3 trillion and includes the launch of a market maker fund and a fund to attract technology companies. Dewa has significant energy generation and desalination capacities and is developing the Mohammed bin Rashid Al Maktoum Solar Park. The utility is also exploring hydrogen as an alternative energy source, including a pilot project with Siemens Energy.

The OECD and IEA are urging governments to avoid investing in fossil fuels despite rising energy prices and to focus on clean energy investments. OECD Secretary-General Mathias Cormann emphasized the importance of aligning support with climate commitments, especially for the vulnerable, while IEA Executive Director Fatih Birol called for phasing out fossil fuel subsidies to enable a surge in clean energy investments. This comes as oil prices reach multi-year highs and the Cop26 summit in Glasgow seeks to secure commitments to limit global warming.

Bank of America forecasts that Brent crude oil prices will average above $80 a barrel into 2023, with expectations of $85 in 2022 and $82 in 2023, revised up from previous estimates. West Texas Intermediate is also expected to trade higher than previous forecasts. The increase is attributed to a global energy crunch, rising demand, and a potential colder winter. Natural gas prices have nearly doubled, and the supply environment is expected to remain tight due to underinvestment and low spare capacity among OPEC+ nations. US shale supply response to higher oil prices is muted, with price elasticity dropping by more than half.

Oil prices rose in October, with Brent increasing by 7% and West Texas Intermediate by 11.4%, despite a weekly decline due to the potential return of Iranian oil to the market. The global energy crunch and a rapid economic recovery have led to high oil prices and doubled natural gas prices. Analysts, including Nouriel Roubini, predict oil could reach $100 per barrel by year-end due to underinvestment in the energy sector amidst a transition to clean energy. The International Energy Agency noted that natural gas shortages are boosting crude demand, affecting inflation and recovery from the pandemic. Opec+ is set to discuss increasing supply on November 4.

The Bank of Singapore reports that the global fuel shortage will not impede the transition to clean energy, despite natural gas and coal shortages in Europe and Asia causing energy prices to surge. The current energy crisis may accelerate policy changes towards clean energy, with oil prices reaching multi-year highs. The momentum towards clean energy is expected to continue, supported by initiatives like Cop26. Investments are anticipated to shift from fossil fuels to renewable energy sources, with wind and solar energy becoming increasingly cost-effective. These sources are projected to dominate electricity generation in key global economies, and clean energy is likely to attract the majority of new investment in generating capacity.

Saudi Aramco and TotalEnergies have inaugurated two fuel stations in Riyadh, marking the beginning of their plan to upgrade a network of 270 units through a joint venture. The stations will offer premium fuels and retail services, catering to the expected increase in domestic travel and demand for hospitality and travel services. The joint venture was established in 2019, and the move is part of Saudi Arabia's opening of its domestic fuel services market to international companies. The partnership between Aramco and TotalEnergies also includes the Satorp refinery in Jubail, with Aramco holding a 62.5% interest.

Iraq plans to invest $3 billion annually to transition from burning liquids to natural gas in power plants, aiming to stop flaring gas by 2025. The country is working to reduce methane emissions ahead of the Cop26 climate change meeting. Iraq's economy, heavily reliant on oil, faces risks from the global shift to net zero. Investments in solar energy are underway, with a goal of 10 gigawatts by 2025, including a project with Abu Dhabi's Masdar. Ali Allawi, Iraq's deputy and finance minister, calls for international support for Iraq's energy transition and highlights Iraq's past contribution to regional food security.

Abu Dhabi National Energy Company (Taqa) and Saudi Aramco are collaborating to develop the Tanajib cogeneration and desalination project, which will produce electricity, steam, and desalinated water for Aramco's oil and gas facilities. The project, which includes a partnership with Japan's Marubeni Corporation, will be operated on a build, own, operate, and transfer model. Taqa is also considering the sale of its oil and gas assets and plans to invest in infrastructure and expand its power capacity and renewables portfolio.

Fertiglobe, a joint venture between Adnoc and OCI, raised approximately $795 million in its initial public offering, making it the third-largest on the Abu Dhabi Securities Exchange. The company set the final share price at Dh2.55, selling over 1.145 billion shares, which was 22 times oversubscribed. Fertiglobe attracted three cornerstone investors and plans to increase its dividend payouts in the coming years. The company will trade under the ticker 'Fertiglobe' starting October 27, 2021. Financial institutions such as Citigroup, First Abu Dhabi Bank, HSBC, and Morgan Stanley coordinated the IPO.

Etihad Credit Insurance, the UAE's federal export credit agency, plans to provide around $3 billion in guarantees for renewable energy projects within the UAE and for its developers operating abroad. This follows the UAE's commitment to achieving climate neutrality. The guarantees will support projects by Masdar and SkyPower. Masdar is developing a $100 million wind farm project in Uzbekistan, expected to be one of the world's largest wind parks. The ECI has already issued Dh3.4 billion in credit guarantees as of September 2021, a threefold increase from the previous year. The agency is also aiding the energy transition in Iraq by providing debt reinsurance for the rehabilitation of seven power plants in collaboration with GE and the Iraqi Ministry of Finance.

Sooraj Das founded Hybrid Hippie, a Dubai-based company selling biodegradable products like yoga mats made from natural materials, with a focus on mindful consumption and sustainability. Self-funded with $150,000, the company launched its product range in February 2020 and now sells across five continents. Hybrid Hippie is committed to carbon neutrality, partnering with One Tree Planted to offset its carbon footprint by planting trees. The company aligns with the UAE's pledge to reach net zero emissions by 2050. Hybrid Hippie prioritizes ethical employment and is cautious about investor funding to maintain its ethical standards. The company plans to expand by building a marketplace for smaller UAE businesses and establishing a US fulfilment centre.

The International Energy Agency (IEA) is calling for a significant increase in clean energy investments to meet the goals of the Paris Agreement and achieve net-zero emissions by 2050. Current climate pledges are insufficient, with only 20% of necessary emissions reductions projected by 2030. The IEA emphasizes the need for clear government commitments at COP26 to scale up clean energy technologies. Despite a global energy shortage and rising oil and gas prices, the IEA criticizes the portrayal of the situation as a clean energy transition crisis and questions the long-term viability of natural gas as a transitional fuel.

Fertiglobe, a joint venture between Abu Dhabi National Oil Company and OCI, is set to raise up to $827 million through an IPO, with shares priced between Dh2.45 and Dh2.65. The company, a leading exporter of urea and ammonia, will sell over 1.145 billion shares, representing 13.8% of its share capital. The IPO has attracted three cornerstone investors, including the Abu Dhabi Pension Fund and Singapore's GIC, with commitments totaling $231 million. Fertiglobe plans to increase its dividend payouts and has appointed Jeffrey Ubben to its board. Post-IPO, OCI will retain a majority stake, while Adnoc will own at least 36.2%. The listing on the ADX marks the first for a free zone company onshore in the UAE and positions Fertiglobe to capitalize on the demand for low-carbon ammonia.

Oil prices continued their rally, with Brent crude nearing $85 and WTI $82 per barrel amid a global energy shortage. The crisis, spurred by a shortage of oil and gas in Europe, has led to a three-year high in oil prices and an 84.69% year-to-date increase in natural gas prices. Banks like UBS have raised oil price forecasts, and oil demand is expected to reach pre-pandemic levels by December. Nouriel Roubini predicts Brent futures could hit $100 per barrel by year-end due to supply pressures and underinvestment in fossil fuels.

Opec+, led by Saudi Arabia and Russia, will maintain its strategy to gradually reintroduce 2 million barrels per day into the market by year-end, as confirmed by UAE Energy Minister Suhail Al Mazrouei. The group will decide on an additional 400,000 bpd supply for October. Oil demand in 2022 is expected to surpass pre-pandemic levels, with a forecasted growth of 6% in the global economy. The IMF highlights an uneven recovery due to vaccine access disparities. Gas prices have also increased, with Henry Hub prices averaging just below $5 per million British thermal units.

Dubai Electricity and Water Authority (DEWA) will unveil its hydrogen strategy in 2022, focusing on clean fuel investment as part of the UAE's energy transition. DEWA's Dh50 million hydrogen pilot project with Siemens Energy at the Mohammed bin Rashid Al Maktoum Solar Park aims to demonstrate solar-powered hydrogen production, storage, and re-electrification. The UAE is exploring hydrogen for public transportation and energy diversification, with Dubai targeting 75% clean energy by 2050 and sustainable transport by 2030. Masdar in Abu Dhabi is also developing a hydrogen demonstrator project, with applications in Masdar City buses and aviation fuel for Etihad Airways and Lufthansa. The global hydrogen industry is projected to grow significantly by 2023 and 2030.

Adnoc Drilling, a subsidiary of Abu Dhabi National Oil Company, is expected to raise approximately $751 million from an IPO by offering 7.5% of its shares at Dh2.30 each, valuing the company at $10 billion. The subscription period for the IPO begins on September 13 and ends on September 23 for UAE retail investors and September 26 for qualified investors, with trading to commence on October 3 on the Abu Dhabi Securities Exchange. Baker Hughes will retain its 5% stake, while Adnoc will remain the majority shareholder. The IPO is part of a broader trend of Abu Dhabi-owned enterprises considering public listings, with the ADX having risen more than 50% since the start of the year.

Oil prices remained bullish despite China's intervention to release crude stockpiles from its strategic reserves in an effort to combat surging energy costs. Brent and West Texas Intermediate both closed higher on Friday. China's move aims to ease the pressure of rising raw material prices. The US has the largest strategic oil reserves, while China has one of the largest. The US Department of Energy previously bought crude to support shale producers during the Covid-19 demand crunch. Market analyst Edward Moya noted optimism for Chinese demand and potential impacts of US legislation on offshore drilling. OPEC is expected to lower its demand forecast and is gradually adding supply to the market. OPEC+ plans to increase supply by 2 million bpd by year's end, with a ministerial meeting scheduled for October 1.

Lebanon is seeking to address its power deficit by connecting to the Arab Gas Pipeline for gas supplies from Egypt, a short-term solution dependent on Egypt's sustainable fuel production. Despite Lebanon's proximity to gas-rich regions, uninterrupted access remains challenging. Egypt, a significant gas producer, must balance exports, domestic needs, and potential Lebanese demand. Regional cooperation is key, with recent ministerial meetings in Amman discussing infrastructure readiness. US sanctions on Syria and Lebanon's reliance on Iranian fuel imports complicate the situation, but a regional gas deal may be preferable for the US and Israel.

Abu Dhabi National Oil Company (Adnoc) has partnered with Helmerich & Payne (H&P) for Adnoc Drilling's IPO, with H&P investing $100 million. Adnoc Drilling will acquire eight FlexRig land rigs from H&P for $86.5 million, supporting Adnoc's goal of 5 million barrels per day production by 2030 and UAE gas self-sufficiency. Adnoc Drilling plans to list 7.5% of its shares on the Abu Dhabi Securities Exchange, with trading expected to start in October. Baker Hughes will maintain its 5% stake, while Adnoc remains the majority shareholder. H&P's investment is part of its international growth strategy and is subject to a three-year lock-up period. Financial advisors for the deal were Moelis & Company for Adnoc and Morgan Stanley for H&P.

Iraq has signed a $27 billion agreement with TotalEnergies for four oil and gas projects, including gas recovery, power generation, seawater injection for crude recovery, and solar power development. TotalEnergies will initially invest $10 billion, aiming to reduce gas flaring and enhance Iraq's sustainable energy use. The investment follows a period of international oil companies exiting Iraq, with BP planning to spin off Rumaila oilfield development. The country seeks to eliminate gas-flaring by 2022 and diversify its economy, heavily reliant on oil revenues.

Oil prices increased after OPEC+ decided to continue with their planned increase of 400,000 barrels per day to the market. Despite pressure from the White House to boost supply, OPEC+ maintained its course, aiming to add two million bpd by year-end. Market fundamentals have improved, with OECD stocks falling. OPEC+ also extended the deadline for overproducing countries to make compensatory cuts. Experts suggest the market will remain in deficit, keeping prices in a bullish structure. The next OPEC+ meeting is scheduled for October 4.

Iraq requires the support of the international community to transition from a fossil fuel-based economy to cleaner energy, according to Iraq's deputy prime minister Ali Allawi and Fatih Birol of the International Energy Agency. They emphasize the risks of economic hardship and instability if oil revenues decline before diversification. Iraq has begun economic restructuring and is exploring solar energy, with a significant project agreement with Masdar. The country aims to eliminate gas flaring by 2022 and is working to diversify its energy sources, despite challenges from infrastructure damage and the Covid-19 pandemic's impact on oil prices.