792-Dr. J. K. Patel Institute Of Management - Gujarat Technological ...

OIL AND GAS INDUSTRY OF UAE
By far the biggest deposits of oil in the Emirates have been found in Abu Dhabi. The
emirate controls more than 85 per cent of the UAE’s oil output capacity and more
than 90 per cent of its reserves. As oil exports began in the late 1950s and early
1960s, it was still a largely undeveloped desert emirate inhabited by nomads, pearl
divers and fishermen. The ruler’s fort was the only building of substance on Abu
Dhabi island, the site of the city today. There were no roads or basic amenities.
Expatriate workers from Bahrain or Kuwait – where the petroleum industry was much
more advanced – were flown in on small aircraft which landed on runways of
flattened sand mixed with oil. In 1966, when Sheikh Zayed bin Sultan Al Nahyan
became ruler, there were fewer than 20,000 people living in Abu Dhabi.
The UAE along with other GCC nations have undertaken significant expansion
projects in order to increase production capacity and maintain market stability. The
UAE continues to significantly increase its production to supply the global energy
markets. While some OPEC nations and many non-OPEC nations have seen
production declines over the last five years, the UAE has increased its total
production of crude oil by approximately 31 percent.
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