Identifier
Created
Classification
Origin
09ABUDHABI332
2009-04-01 13:29:00
CONFIDENTIAL
Embassy Abu Dhabi
Cable title:
UAE ENERGY MINISTER ON OIL PRICES, INVESTMENT
how-toVZCZCXRO6394 OO RUEHDE RUEHDH DE RUEHAD #0332 0911329 ZNY CCCCC ZZH O 011329Z APR 09 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC IMMEDIATE 2319 INFO RUEHDE/AMCONSUL DUBAI PRIORITY 8218 RHMFISS/DEPT OF ENERGY WASHINGTON DC RUEHHH/OPEC COLLECTIVE
C O N F I D E N T I A L ABU DHABI 000332
SIPDIS
DEPARTMENT FOR NEA/ARP (BMASILKO) AND EEB/ESC/IEC/EPC (MMCMANUS)
E.O. 12958: DECL: 03/31/2019
TAGS: EPET ENRG PGOV AE
SUBJECT: UAE ENERGY MINISTER ON OIL PRICES, INVESTMENT
Classified by Ambassador Richard Olson for reasons 1.4 (b and d).
REFS: A) 08 ABU DHABI 1385
B) 08 ABU DHABI 1062
C O N F I D E N T I A L ABU DHABI 000332
SIPDIS
DEPARTMENT FOR NEA/ARP (BMASILKO) AND EEB/ESC/IEC/EPC (MMCMANUS)
E.O. 12958: DECL: 03/31/2019
TAGS: EPET ENRG PGOV AE
SUBJECT: UAE ENERGY MINISTER ON OIL PRICES, INVESTMENT
Classified by Ambassador Richard Olson for reasons 1.4 (b and d).
REFS: A) 08 ABU DHABI 1385
B) 08 ABU DHABI 1062
1. (C) During a March 30 meeting, UAE Minister of Energy Mohammed bin
Dhaen Al Hamili told the Ambassador that the UAE would be "lucky" if
oil prices stabilized at USD 50/barrel. Al Hamili said that low oil
prices were needed to stimulate the "very weak" world economy. He
noted that the UAE never promotes high oil prices and that 2008 highs
were a result of speculation, not market fundamentals.
2. (c) Al Hamili said the UAE has a moral obligation to maintain
excess capacity to meet sudden demand spikes, although excess
capacity is not profitable. Adding that spare capacity prevents oil
price spikes, Al Hamili commented that only the UAE, Kuwait, Saudi
Arabia and perhaps Iraq are currently producing below capacity.
Repeating the views of senior Abu Dhabi National Oil Company (ADNOC)
officials (reftels),Al Hamili said that the UAE would continue to
invest in scheduled capacity expansion. Unlike other countries, the
UAE has the necessary reserves to continue scheduled projects despite
tight global liquidity. Al Hamili said that he feared declining
industry investment elsewhere could lead to future high oil prices if
rising demand exceeded supply as the global economy recovered.
OLSON
SIPDIS
DEPARTMENT FOR NEA/ARP (BMASILKO) AND EEB/ESC/IEC/EPC (MMCMANUS)
E.O. 12958: DECL: 03/31/2019
TAGS: EPET ENRG PGOV AE
SUBJECT: UAE ENERGY MINISTER ON OIL PRICES, INVESTMENT
Classified by Ambassador Richard Olson for reasons 1.4 (b and d).
REFS: A) 08 ABU DHABI 1385
B) 08 ABU DHABI 1062
1. (C) During a March 30 meeting, UAE Minister of Energy Mohammed bin
Dhaen Al Hamili told the Ambassador that the UAE would be "lucky" if
oil prices stabilized at USD 50/barrel. Al Hamili said that low oil
prices were needed to stimulate the "very weak" world economy. He
noted that the UAE never promotes high oil prices and that 2008 highs
were a result of speculation, not market fundamentals.
2. (c) Al Hamili said the UAE has a moral obligation to maintain
excess capacity to meet sudden demand spikes, although excess
capacity is not profitable. Adding that spare capacity prevents oil
price spikes, Al Hamili commented that only the UAE, Kuwait, Saudi
Arabia and perhaps Iraq are currently producing below capacity.
Repeating the views of senior Abu Dhabi National Oil Company (ADNOC)
officials (reftels),Al Hamili said that the UAE would continue to
invest in scheduled capacity expansion. Unlike other countries, the
UAE has the necessary reserves to continue scheduled projects despite
tight global liquidity. Al Hamili said that he feared declining
industry investment elsewhere could lead to future high oil prices if
rising demand exceeded supply as the global economy recovered.
OLSON