Oil and Gas Industry contributes a major share in the United Arab Emirates economy and also to the Gross National Product. The sector meets both the national and international demands. Abu Dhabi National Oil Company (ADNOC) is the principal oil company, which formulate policies in Abu Dhabi on behalf of the Supreme Petroleum Council. ADNOC also owns the gas reserves of Abu Dhabi on behalf of the government. The production is jointly handled by an association of international companies. As per the government records the oil production is about 2 million barrels per day and gas production is also increasing with the times.
Some of the eminent oil and gas sectors in United Arab Emirates are Dubai, Sharjah and Fujairah. The production of Dubai oil and gas sector generated 240,000 barrels per day and large quantities of natural gas when required. However there are smaller oil and gas fields in Sharjah. Fujairah is the third oil field in the world. United Arab Emirates is ranked as the fourth largest natural gas extractor in the world and third in the region.
International Scenario
United Arab Emirates has an important stand in the international market scenario in the field of oil and natural gas. Abu Dhabi is the major oil producer in United Arab Emirates generating 85% of the total oil output and operates more than 90% of its crude reserves. Abu Dhabi contains a good number of offshore and onshore fields. Some of the onshore oil fields are Bu Hasa, Sahil, Asab, Bab and Shah. Some of the offshore oil fields in United Arab Emirates are Lower Zakum, Al Bunduq, Upper Zakum, and Umm Shaif. Khuff is one of the world's largest single gas reservoirs.
The Abu Dhabi National Oil Company is the largest crude oil producer and is rated among the top 10 oil generating companies of the world. A substantial portion of Abu Dhabi's total commercial oil production is generated by Abu Dhabi Company for Onshore Operations (ADCO). It is also the largest producer of crude oil in United Arab Emirates. Abu Dhabi Marine Operating Company (ADMA- OPCO) is the second producer of oil and gas in United Arab Emirates. The oil and gas generated by this company are sent to Das Island for further processing and storage. It is hen exported. The Abu Dhabi National Oil Company owns both the ADCO and ADMA- OPCO, which is fully government and functions according to the Supreme Petroleum Council.
ADCO, ADMA-OPCO, ZADCO, GASVCO, ADGAS, ADNATCO, NGSCO, ADNOC-FOD, FERTIL, BOROUGE are the companies which are part of the Abu Dhabi National Oil Company group of companies. The ADNOC also launched the Dolphin Project to meet the growing demand of the industries. The project aimed at smooth transportation of gas from Qatar's gas reserves to the industries of UAE.
Dubai is also one of the oil producing cities in United Arab Emirates. Some of the oil reserves in Dubai are Fateh, Rashid, Margham and Falah. Dubai Natural Gas Company and Dubai Petroleum Company are owned by the state and are responsible for extracting oil and natural gas.
Sharjah owns 5% of UAE's gas reserves. About 800 mn cfd gas is extracted from the Sharjah gas reserves. Mubarak field is one of the major gas fields of Sharjah. The Sharjah Liquefied Gas Company was established aiming to promote exports of liquefied natural gas.
The reserves in Ras al- Khaimah generate about 400 million barrels of oil and 1200 bn cfd of natural gas. The Ras al- Khaimah Oil and gas Company possess exclusive rights of hydrocarbon. Six active reserves of United Arab Emirates generate about 800,000 ton of hydrocarbon. Further plans are also being made to develop refineries and petrochemical plants to boost the production and export. Emirates Petroleum Products Company (EPPCO) was set up in 1999 to export its produces like kerosene oil, jet fuel, naphtha, marine diesel oil, jet fuel and liquid natural gas.
The United Arab Emirates government is formulating plans to expand its energy sector. The government is also planning to establish plants to strengthen its oil and gas industry.
