UAE Minister Al Jaber Warns Of Global Energy Security Risks As Nearly 1Bn Oil Barrels Drained

(MENAFN- Khaleej Times) Nearly one billion barrels of crude oil have been drawn from global inventories since disruptions in the Strait of Hormuz, while shipping and logistics costs have risen sharply, Dr Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and Adnoc Managing Director and Group CEO said calling for an overhaul of global energy security systems.

Speaking at the opening of Adipec 2026 in Abu Dhabi, Al Jaber warned that recent disruptions had exposed vulnerabilities in international energy supply chains, putting pressure on inventories, transportation networks and the ability to deliver supplies to consumers.

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He said diesel inventories in some markets had fallen to their lowest seasonal levels in 35 years, while others were facing a liquefied natural gas (LNG) supply gap of 600 billion cubic feet.

“Simply put, the world has eroded its supply buffers,” Al Jaber said.

The disruption comes amid the US-Israeli war on Iran, which began on February 28 and has affected shipping through the Strait of Hormuz, a critical route for global energy supplies.

Shipping costs rise sharply

Al Jaber said shipping and logistics costs had increased from less than 5 per cent of the cost of a barrel before the disruption to more than 30 per cent, fundamentally changing the economics of energy security.

“Supply is only half the story. The other half is delivery,” he said.

He stressed that energy security could no longer be measured solely by production capacity, but must also consider whether supplies can reach customers reliably.

Diesel prices in several markets have surged to record highs amid wartime supply disruptions, raising concerns about inflation and higher living costs for consumers and businesses, Reuters reported.

Brent crude was trading at around $110 a barrel on Monday, approximately 50 per cent higher than its level before the conflict began in February.

IEA releases emergency fuel supplies

In October, the International Energy Agency (IEA) agreed to release more than 20 million barrels of diesel, alongside any oil remaining from a record emergency reserves release pledged in March, in an effort to increase supplies and ease price pressures.

Saudi Aramco CEO Amin Nasser also warned last month that fewer than six billion barrels of commercial oil inventories remained globally, with much of that supply not readily available.

The developments highlight growing pressure on global energy markets as governments and producers seek to maintain supply flows and limit the economic impact of prolonged disruptions.

Five priorities to strengthen energy security

Al Jaber outlined five priorities for building a more resilient global energy system.

The first involves expanding strategic storage, increasing product stockpiles and developing flexible refining capacity closer to consumer markets.

The second focuses on strengthening routes to market through reliable infrastructure and advanced logistics.

The third calls for intelligent energy systems that can anticipate risks, optimise performance and reduce production costs.

The fourth highlights the role of supportive policies, financing and insurance in maintaining confidence and ensuring trade continues during disruptions.

The fifth, which Al Jaber described as the most important, focuses on people and the need for skilled workers to maintain safe and reliable energy operations.

He said the industry must invest in infrastructure and human capabilities before future disruptions occur.

UAE's resilience built on long-term investment

Al Jaber said the UAE's ability to respond to recent disruptions reflected years of investment in energy infrastructure, logistics, technology and human capital.

“We did not write our resilience playbook during this disruption. We wrote it years before,” he said.

He highlighted Adnoc's integrated trading operations, advanced logistics capabilities and XRG's global portfolio across gas, chemicals and energy solutions as examples of the company's long-term preparations.

Al Jaber also praised the UAE Armed Forces, Civil Defence, firefighters, first responders and Adnoc frontline employees for their efforts during the recent disruptions.

He said the UAE would continue advocating dialogue, active diplomacy and political solutions to support stability in energy markets and the wider global economy.

ADIPEC 2026 expects record attendance

Held under the patronage of UAE President Sheikh Mohamed bin Zayed Al Nahyan and hosted by Adnoc, Adipec 2026 is expected to attract more than 239,000 attendees from over 170 countries.

The opening ceremony was held at the Abu Dhabi Energy Centre, while the exhibition and conference are taking place at Adipec Centre Abu Dhabi until November 5.

The event brings together 40 government ministers, more than 2,250 exhibiting companies, around 1,800 speakers and 30 country pavilions.

Its programme features more than 380 sessions bringing together government officials, energy executives, investors and industry experts to discuss energy security, investment and technological innovation.

The opening address was delivered in the presence of Sheikh Mansour bin Zayed Al Nahyan, UAE Vice President, Deputy Prime Minister and Chairman of the Presidential Court.

Al Jaber said decisions taken today on energy infrastructure, investment and partnerships would shape the global energy landscape over the coming decade.

“The choices we make today will determine the energy landscape a decade from now,” he said.

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Adipec 2026: World's energy supply buffers have been eroded, Adnoc CEO says No reliance on Strait of Hormuz, UAE moves to east coast, says top official UAE activates alternative trade corridors as Hormuz closure tests supply chains

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