The View From Sultan Al Jaber
The confirmation of Chris Wright as US Energy Secretary is a win for pragmatism, and an opportunity to reframe an energy narrative that has been far too negative for far too long.
In a world where energy demand is only going one way, we don’t just need more energy, we need more positive energy: a can-do spirit to find solutions that deliver the energy the world needs, in the most cost- and carbon-efficient way possible. This starts with acknowledging that energy and progress are inseparable. Secretary Wright summed it up perfectly in his confirmation hearing: “Energy is the essential agent of change that enables everything that we do. Everything.” Here in the UAE, we could not agree more.
The world, increasingly, is waking up to this fundamental truth, as three megatrends reshape our future and drive energy demand in ways we never thought possible.
First, the growth of emerging markets, which now drive more than half of the world’s prosperity. Second, the fundamental transformation of our energy systems, expanding our energy mix and creating entirely new industries. And third, the exponential growth of artificial intelligence, changing the pace of change itself. These megatrends, together, have the potential to put progress into overdrive, and they all depend on greater access to energy.
With almost a billion people still lacking basic access to energy and AI ramping up requirements, global power demand is projected to grow from about 9,000 GW now to 15,000 GW by 2035 and could reach as high as 35,000 GW by 2050. That’s why the world needs to talk less about cancelling energy options and more about embracing energy diversity. Policies and regulations that prematurely reduce those options are self-defeating. We need a pragmatic, and-and approach that says yes to lower-carbon gas and the least carbon-intensive oil, as well as more nuclear, more hydrogen and more commercially-sound investment in renewables and other clean technologies of the future.
That has been the UAE strategy for two decades. We remain a reliable supplier of the least carbon-intensive barrels, while building on our position as a first mover in renewable energy, with investments in over 70 countries. Masdar, the UAE’s renewable energy leader, has invested in seven projects in three US states and is halfway to its global goal of reaching 100 GW by 2030. And, last month at Abu Dhabi Sustainability Week, we unveiled a first-of-its-kind project that addresses the biggest challenge facing renewables: intermittency.
With the launch of the world’s first facility capable of providing clean power at scale, around the clock, we have the beginnings of an answer. Masdar is combining 5 GW of solar capacity with 19 Gigawatt-hours of storage to produce 1 GW of uninterrupted clean power. This will, for the first time ever, transform renewable energy into baseload power.
Still, while this represents a major breakthrough, it is not a silver bullet. We need a diversity of energy options to meet a diversity of energy needs. Over the next decade, we will need more gas to power the exponential growth of data centers, more chemicals to provide the liquid coolants that could significantly reduce data center energy demand, and more infrastructure to ensure that all energy — molecules and electrons — get to the end user, wherever they are.
That’s the thinking behind Abu Dhabi’s newest addition to its energy portfolio: XRG is an international energy investment company that will focus on projects across the spectrum, from gas to chemicals to low carbon fuels to energy infrastructure. Under the XRG umbrella, we are partnering with Exxon in the world’s biggest ammonia and hydrogen production facility in Texas; we are investing with NextDecade in the state’s largest liquefied natural gas facility; and through our acquisition of Covestro, we are supporting thousands of highly skilled US jobs in high-performance plastics and advanced polymers.
For too long, the world has been trapped in a false choice between energy access and sustainability. This either-or thinking is paralyzing progress. It is time to change the narrative. The UAE looks forward to working with Secretary Wright on a path forward that delivers energy abundance and sustainable prosperity. That’s how positive energy will lead to positive outcomes.
Sultan Al Jaber is the UAE’s minister of industry and advanced technology, the CEO of Abu Dhabi National Oil Company, and the chair of Abu Dhabi Future Energy Company, also known as Masdar.