Ministry of Energy

The SAIS MES delegation to the United Arab Emirates had the honor to meet with His Excellency Minister of Energy Suhail Al Mazroui. In his introduction, the Minister emphasized the original philosophy of the Sheikh Zayed, founder of the UAE, to use oil and gas revenues to develop and modernize the country. Today, the goal of the Ministry of Energy is to further the country’s energy strategy through programs and policies to decrease reliance on oil and gas revenues, increase energy and water usage efficiency, and diversify the country’s electricity generation portfolio. The country aims to eliminate government budget reliance on oil and gas export revenues by 2030. Minister Mazroui also shared his thoughts on the establishment, historical development, and future outlook of OPEC and world oil markets. He spent some time explaining the dramatic decline in oil prices, primarily related to the supply boom linked to the shale oil revolution in the U.S.

          The Minister also discussed the UAE’s 2007–2017 plan to phase nuclear generation into the electricity mix, emphasizing its strictly civilian nature.  Currently, the UAE uses primarily natural gas for electricity generation, much of which it needs to import. Nuclear power will help the UAE to diversify its energy supply and reduce its natural gas import bill, and possibly free up resources for renewed gas exports in the future. The country aims to bean example for the region of how to develop a peaceful nuclear energy program.

         

          The Minister highlighted the government’s process in eliminating many energy subsidies in order to make the UAE economy more sustainable and energy efficient. He emphasized how the UAE managed to recently remove all gasoline subsidies, which encourages people to limit their consumption. He also discussed plans to phase out general electricity tariff subsidies, target subsidies to those in need only, and various programs to incentivize energy and water efficiency in residences and businesses. The government is setting an example by retrofitting existing public buildings with high-efficiency building envelopes and appliances, and by adhering to efficient construction standards with all new buildings.

          A Q&A session followed, with many questions regarding energy challenges facing the country and whether or not the UAE aims at a higher use of renewable energies. Minister Al Mazroui singled out excessive and unsustainable water consumption as the country’s primary resource challenge moving forward. He believes that the country needs to find new and alternative sources of fresh water. Moreover, the UAE population needs to be educated on ways to drastically reduce water consumption. Regarding renewable energies, the UAE has been already investing substantially in this field. The Minister emphasized the need for a solution to enable electricity storage, which would significantly boost investment in renewable energy.

         
The meeting provided SAIS students, some of whom are also pursuing concentrations in Energy, Resources, and Environment, with the opportunity to engage in dialogue with someone shaping the energy policy of a major oil producer in a world increasingly focused on resource sustainability.

~Samer Abdul Samad, second year Middle East Studies concentrator, SAIS

~Geoff King, second year Middle East Studies concentrator, SAIS