UAE the third-largest petroleum producer in OPEC in 2019 behind Saudi Arabia and Iraq
As of 2019, the United Arab Emirates (UAE) is among the world’s 10 largest oil producers and is a member of the Organization of the Petroleum Exporting Countries (OPEC) and the Gas Exporting Countries Forum (GECF).
The UAE is a major oil producer and exporter. In 2019, the country produced an average of 4.0 million barrels per day of petroleum and other liquids, the seventh-highest total in the world.
Reserves Production and Consumption
According to Oil & Gas Journal estimates as of January 2020, the UAE holds the seventh-largest proved reserves of oil in the world at 98 billion barrels,3 with most of the reserves located in Abu Dhabi (about 96% of the UAE’s total).
The other six emirates account for just 4% of the UAE’s crude oil reserves, led by Dubai with about 2 billion barrels.4 The UAE holds about 6% of the world’s proved oil reserves.5
The UAE produced 4.0 million barrels per day (b/d) of petroleum and other liquids in 2019, of which about 3.1 million b/d was crude oil and the remainder was non- crude oil liquids (condensate, natural gas plant liquids, and refinery processing gain).
The UAE was the third-largest petroleum producer in OPEC in 2019 behind Saudi Arabia and Iraq.
The UAE plans to increase crude oil production capacity from 3.5 million b/d to 5.0 million b/d in 2030,6 but with limited prospects for major discoveries, production increases in the UAE will come almost exclusively by using enhanced oil recovery (EOR) techniques in Abu Dhabi’s existing oil fields.
Recent exploration in the UAE has yielded several discoveries of crude oil, equaling 1 billion barrels of oil in place.7 The UAE emphasizes EOR techniques designed to extend the lifespan of the emirate’s existing oil fields.
By improving the recovery rates at the existing fields, such techniques helped the UAE to nearly double the proved reserves in Abu Dhabi during the past decade.
The UAE is both a major exporter and consumer of petroleum liquids. According to ClipperData, the UAE exported more than 2.9 million b/d of waterborne crude oil in 2019, and most of it went to Japan (29%) and other markets in Asia
The UAE domestic market relies on imports to meet the demand for some petroleum products. Most of the UAE’s petroleum imports are residual fuel oil, with limited imports of motor gasoline and diesel fuel.
Already the world’s second-largest bunkering port, the export terminal in Fujairah will expand its storage capabilities significantly over the coming years.
Plans to expand the terminal include several new private tank storage units, which have an anticipated capacity of 42 million barrels by 2022.9 When complete in 2022, the Abu Dhabi state oil firm Abu Dhabi National Oil Company’s (ADNOC) Fujairah Underground Storage facility will be able to store three different types of crude oil, providing ADNOC with increased flexibility to export crude oil through Fujairah’s Arabian Sea oil terminal.