Global energy security must be fundamentally rebuilt as disruptions to the Strait of Hormuz deplete oil inventories, weaken supply buffers and drive up shipping costs, Abu Dhabi National Oil Company (ADNOC) Managing Director and Group Chief Executive, Dr Sultan Ahmed Al Jaber, has warned.
Speaking at the opening of ADIPEC 2026 in Abu Dhabi on Monday, November 2, Al Jaber said nearly one billion barrels of crude oil had been drawn from global inventories since the disruption began.
He also warned that diesel stocks in some markets had fallen to their lowest seasonal levels in 35 years, while certain markets faced a liquefied natural gas (LNG) supply gap of 600 billion cubic feet.
“Simply put, the world has eroded its supply buffers,” he said.
The ADNOC chief further highlighted the growing cost of transporting energy products, arguing that global energy security must now account for the ability to deliver supplies to consumers, not just produce them.
According to him, logistics costs, which previously accounted for less than five per cent of the cost of a barrel of oil, have now risen to more than 30 per cent.
His remarks come as energy executives, policymakers and investors gather in Abu Dhabi for ADIPEC 2026, which runs from November 2 to 5.
Five priorities for strengthening energy security
Al Jaber outlined five priorities for rebuilding global energy security and improving the industry’s resilience against future disruptions.
These include increasing strategic oil reserves, expanding fuel stockpiles and developing more flexible refining capacity closer to end-user markets.
He also called for greater investment in transportation infrastructure and logistics to ensure energy supplies can reach international markets even during periods of disruption.
Another priority is the application of artificial intelligence (AI) to anticipate risks, improve operational efficiency and reduce production costs.
Al Jaber further stressed the need for investment-friendly government policies and stronger participation from financial institutions and insurers to sustain global energy trade.
He identified the energy workforce as another critical component, emphasising the role of people in maintaining supply operations during crises.
“The choices we make today will determine the energy landscape a decade from now,” he said.
ADNOC partners OpenAI and G42 on artificial intelligence
Beyond energy security, Al Jaber highlighted ADNOC’s partnership with OpenAI and Abu Dhabi technology group G42 to accelerate the application of artificial intelligence across its operations.
The agreement will make ADNOC the first energy company to deploy OpenAI Frontier, with applications covering oilfield development, well management and commercial operations.
The technology is expected to help the company assess the value of oil resources before extraction and reduce complex development planning processes from months to hours.
Al Jaber welcomed OpenAI Chief Executive Sam Altman to ADIPEC, describing the partnership as an opportunity to strengthen the relationship between energy and artificial intelligence.
“From the moment ChatGPT was born, the world has asked what energy can do for AI. And now, together, we will find out what AI can do for energy,” he said.
UAE reaffirms commitment to energy market stability
Al Jaber also highlighted the UAE’s investments in infrastructure, technology and international partnerships, which he said had strengthened the country’s ability to withstand regional disruptions.
He said ADNOC’s preparedness was the result of long-term investments rather than measures introduced in response to the current crisis.
The ADNOC chief reaffirmed the UAE’s support for diplomatic efforts to restore stability to energy markets and the wider global economy.
He also commended the UAE Armed Forces, Civil Defence, firefighters, first responders and ADNOC frontline workers for helping maintain essential operations during the disruption.
He concluded by reaffirming the country’s commitment to its international partners, saying the UAE remained a dependable partner during periods of uncertainty.