By: Anas bin Faisal Al-Hajji is an economist specializing in energy
The Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC-2025), one of the largest energy-related conferences and exhibitions in the world, is currently taking place in Abu Dhabi and is expected to exceed 200,000 participants and visitors, with a large number of ministers, heads of international companies and experts speaking, including US Secretary of the Interior Doug Bregum, and the US Department of the Interior is responsible for natural resources within the United States, including oil and gas.
From the first day of the conference, there are clear messages to the world: there is no carbon neutrality, there is no energy transition, but there is a continuous addition of energy.
Everyone agreed that the global demand for energy will continue for various reasons summarized by Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Managing Director and CEO of ADNOC and its group of companies, in his opening remarks at the conference: "Electricity demand will continue to rise until 2040 due to data centers quadrupling their need for electricity, 1. 5 billion people moving to cities, 2 billion additional air conditioners, the aviation sector booming as the number of global airlines doubles from 25,000 to 50,000 planes, and as a result, renewable energy production will increase.The aviation sector will boom as the global airline fleet doubles from 25,000 to 50,000 aircraft, as a result of which renewable energy production will more than double by 2040, liquefied natural gas will grow by 50 percent, and jet fuel by more than 30 percent. Oil production will remain above 100 million barrels per day beyond 2040, and it will be used more and more in the manufacture of many materials as well as in transportation. In light of all these facts, it is clear that the issue is more complex than transitioning to one type of energy source, as we need to enhance energy sources, not replace one source with another."
When European countries, the United States and others adopted climate change policies and spent huge amounts of money on solar, wind and biofuel farms, the goal was to replace coal, gas and oil, and this replacement was called the "energy transition." The issue is that the huge rise in energy demand means that we need all energy sources, so replacement will not happen, so we need to enhance energy sources instead of eliminating some of them.
Refuting the negative outlook in oil markets
The US Secretary of the Interior emphasized that inventions and creativity are more important than regulation, and this reflects the "Republican" viewpoint as they want less government intervention and a greater role for the private sector in the economy, and reflects the extent of the Trump administration's interest in technical progress in the field of artificial intelligence to compete with China.
The idea that "inventions and innovation are more important than regulation" was indirectly challenged by Qatar's Energy Minister Saad bin Sherida al-Kaabi, who stated that the EU's regulation issues could cause energy crises, and reiterated his threat to halt LNG exports to the EU if the so-called "sustainability law," which raises corporate costs to the point where EU issuances are no longer profitable, is not repealed or relaxed The so-called "sustainability law," which raises corporate costs to the point where issuing to the EU is no longer profitable, has not been repealed or relaxed, and ExxonMobil President Darren Wood has stated that these laws will force oil companies, including Exxon, out of the EU.
Energy and Artificial Intelligence
This year, ADIPEC-Al Jaber spoke about the use of AI at ADNOC: "We use all available technologies, including artificial intelligence and robotics, to accelerate turnaround times and enhance value." Al Jaber said: "We use all available technologies, including artificial intelligence and robotics, to accelerate turnaround times and enhance value, and through our AIQ company, we use 200 AI tools and applications across all aspects of our operations, from wellheads to trading floors "Through AiQ, we use more than 200 AI tools and applications across our operations, from wellheads to trading floors, to reduce downtime by half, increase efficiency across our business, and our flagship AI for Future Energy solution is set to support a 90 percent improvement in the accuracy of production forecasts, and that's just the beginning.
Artificial Intelligence and Global Security
Iain Bremmer, founder of the Eurasia Advisory Group, emphasized the dual role of AI as an economic accelerator and a destabilizing force, highlighting the intersection of AI with energy security and US-China rivalry, stating that AI has become a new political space for conflict and competition. He described it as not just a technological leap but a geopolitical accelerator that exacerbates existing tensions in a fragmented world, in a turbulent era characterized by the separation of the United States and China, regional conflicts such as Ukraine and the Middle East, and climate pressures, and exacerbates class disparity and inequality by concentrating power in the hands of a few actors.
Bremer focused on the paradox of AI, as it promises a large number of people huge productivity gains through smartphone applications, but a few control the data and algorithms such as Google, Nvidia, and OpenEye. "AI is not neutral, but a mirror of the divisions of the world, and whoever controls the chips, data and energy controls the future," he said, emphasizing the idea that the technical development that led to the reduction of the cost of computers and smartphones is what leads to the production of big data and then a huge increase in energy consumption, and meeting the demand generated by AI requires investments exceeding 7 trillion dollars. To meet this AI-induced demand will require investments exceeding $7 trillion. Many topics will be covered today and tomorrow, including hydrogen and nuclear energy, as well as other areas related to logistics, shipping, and various investment and financing methods.
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