Identifier
Created
Classification
Origin
04ABUDHABI1942
2004-06-13 12:42:00
CONFIDENTIAL
Embassy Abu Dhabi
Cable title:
UAE PRODUCTION IN THE WAKE OF THE JUNE OPEC QUOTA
how-tonull Diana T Fritz 02/06/2007 05:39:24 PM From DB/Inbox: Search Results Cable Text: CONFIDENTIAL SIPDIS TELEGRAM June 13, 2004 To: No Action Addressee Action: Unknown From: AMEMBASSY ABU DHABI (ABU DHABI 1942 - ROUTINE) TAGS: EPET, ENRG, ECON Captions: None Subject: UAE PRODUCTION IN THE WAKE OF THE JUNE OPEC QUOTA INCREASE Ref: None _________________________________________________________________ C O N F I D E N T I A L ABU DHABI 01942 SIPDIS CXABU: ACTION: ECON INFO: DCM POL P/M AMB Laser1: INFO: FCS DISSEMINATION: ECON CHARGE: PROG APPROVED: AMB:MMWAHBA DRAFTED: ECON:OJOHN CLEARED: ECON:CMARTIN-CRUMPLER, DCM:RALBRIGHT VZCZCADI183 RR RUEHC RUEHHH RUEHDE RUCPDOC RHEBAAA DE RUEHAD #1942 1651242 ZNY CCCCC ZZH R 131242Z JUN 04 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC 4701 INFO RUEHHH/OPEC COLLECTIVE RUEHDE/AMCONSUL DUBAI 4057 RUCPDOC/DEPT OF COMMERCE WASHDC RHEBAAA/DEPT OF ENERGY WASHDC
C O N F I D E N T I A L ABU DHABI 001942
SIPDIS
DEPT FOR NEA/RA, NEA/ARP, INR/EC, EB/IEP, EB/CBA
USDOE FOR INT'L AFFAIRS - COBURN, ALSO CALIENDO
USDOE FOR OFFICE OF THE SECRETARY - RHONDA HUDOME
USDOC FOR 1000/OC/
USDOC FOR 4520/ITA/IEP/ONE
USDOC FOR 4530/ITA/MAC/ONE/DGUGLIELMI
4500/ITA/MAC/DAS/WILLIAMSON
3131/CS/OIO/ANESA
E.O. 12958: DECL 06/06/2009
TAGS: EPET ENRG ECON TC
SUBJECT: UAE PRODUCTION IN THE WAKE OF THE JUNE OPEC QUOTA
INCREASE
(U) Classified by Ambassador Marcelle M. Wahba, for reasons
1.5 (B) and (D).
C O N F I D E N T I A L ABU DHABI 001942
SIPDIS
DEPT FOR NEA/RA, NEA/ARP, INR/EC, EB/IEP, EB/CBA
USDOE FOR INT'L AFFAIRS - COBURN, ALSO CALIENDO
USDOE FOR OFFICE OF THE SECRETARY - RHONDA HUDOME
USDOC FOR 1000/OC/
USDOC FOR 4520/ITA/IEP/ONE
USDOC FOR 4530/ITA/MAC/ONE/DGUGLIELMI
4500/ITA/MAC/DAS/WILLIAMSON
3131/CS/OIO/ANESA
E.O. 12958: DECL 06/06/2009
TAGS: EPET ENRG ECON TC
SUBJECT: UAE PRODUCTION IN THE WAKE OF THE JUNE OPEC QUOTA
INCREASE
(U) Classified by Ambassador Marcelle M. Wahba, for reasons
1.5 (B) and (D).
1. (C) Ambassador, accompanied by EconChief paid her
farewell call to ADNOC CEO Yousef Omair bin Yousef and
Deputy CEO Abdullah Nasser Al-Suwaidi on June 6, 2004. The
Ambassador thanked Yousef for the UAE and OPEC's welcome
action and asked about the UAE's announcement that it would
produce an extra 400,000 barrels per day. Yousef
acknowledged that some of the announcement reflected extra
oil that the UAE had already been producing. He said that
the UAE's new production would be about 2.5 million barrels
per day. (note: The UAE's quota before the increase was
2.05 mbd. After the Beirut meeting, its quota increased to
2.22 mbd. Dubai production does not/not count as part of
the UAE's OPEC quota.) He added that the UAE's normal
production, counting Dubai, was about 2.2 million barrels
per day. Yousef further said that the UAE produced about
250,000 barrels per day of condensate, which were not
covered by the OPEC quota.
2. (C) The Ambassador asked for Yousef's opinion about the
impact of OPEC's decision on oil prices. Yousef stated
that he thought speculation and political concerns were
playing a role in the current high oil prices. He noted
that total world consumption of oil was about 80 million
barrels per day, but that the volume of traded oil was 180
million barrels per day. He also explained that oil demand
was indeed increasing, and cited China as an example of a
country that was increasing its energy use at a tremendous
rate.
3. (C) For its part, ADNOC was looking at expanding its
production capacity, increasing its oil production capacity
by 20 to 30 percent over the next three to seven years and
doubling onshore LPG output. Yousef also said that ADNOC
would be looking to expand dramatically its petrochemical
production over the next few years. In response to the
Ambassador's question about reports that the northern
emirates were interested in gas deals with Iran and whether
that would affect ADNOC, Yousef stated that it would not.
ADNOC did not have a gas contract with Sharja. It was
supplying gas to Dubai and was increasing its deliveries to
meet demand.
Wahba
SIPDIS
DEPT FOR NEA/RA, NEA/ARP, INR/EC, EB/IEP, EB/CBA
USDOE FOR INT'L AFFAIRS - COBURN, ALSO CALIENDO
USDOE FOR OFFICE OF THE SECRETARY - RHONDA HUDOME
USDOC FOR 1000/OC/
USDOC FOR 4520/ITA/IEP/ONE
USDOC FOR 4530/ITA/MAC/ONE/DGUGLIELMI
4500/ITA/MAC/DAS/WILLIAMSON
3131/CS/OIO/ANESA
E.O. 12958: DECL 06/06/2009
TAGS: EPET ENRG ECON TC
SUBJECT: UAE PRODUCTION IN THE WAKE OF THE JUNE OPEC QUOTA
INCREASE
(U) Classified by Ambassador Marcelle M. Wahba, for reasons
1.5 (B) and (D).
1. (C) Ambassador, accompanied by EconChief paid her
farewell call to ADNOC CEO Yousef Omair bin Yousef and
Deputy CEO Abdullah Nasser Al-Suwaidi on June 6, 2004. The
Ambassador thanked Yousef for the UAE and OPEC's welcome
action and asked about the UAE's announcement that it would
produce an extra 400,000 barrels per day. Yousef
acknowledged that some of the announcement reflected extra
oil that the UAE had already been producing. He said that
the UAE's new production would be about 2.5 million barrels
per day. (note: The UAE's quota before the increase was
2.05 mbd. After the Beirut meeting, its quota increased to
2.22 mbd. Dubai production does not/not count as part of
the UAE's OPEC quota.) He added that the UAE's normal
production, counting Dubai, was about 2.2 million barrels
per day. Yousef further said that the UAE produced about
250,000 barrels per day of condensate, which were not
covered by the OPEC quota.
2. (C) The Ambassador asked for Yousef's opinion about the
impact of OPEC's decision on oil prices. Yousef stated
that he thought speculation and political concerns were
playing a role in the current high oil prices. He noted
that total world consumption of oil was about 80 million
barrels per day, but that the volume of traded oil was 180
million barrels per day. He also explained that oil demand
was indeed increasing, and cited China as an example of a
country that was increasing its energy use at a tremendous
rate.
3. (C) For its part, ADNOC was looking at expanding its
production capacity, increasing its oil production capacity
by 20 to 30 percent over the next three to seven years and
doubling onshore LPG output. Yousef also said that ADNOC
would be looking to expand dramatically its petrochemical
production over the next few years. In response to the
Ambassador's question about reports that the northern
emirates were interested in gas deals with Iran and whether
that would affect ADNOC, Yousef stated that it would not.
ADNOC did not have a gas contract with Sharja. It was
supplying gas to Dubai and was increasing its deliveries to
meet demand.
Wahba