Vision 2030 Jan. 2011 | Page 52

• • Hydrocarbon revenues and derived investments accounted for 83% of total fiscal revenues between 2001 and 2005. Reducing reliance on oil revenues would bring Abu Dhabi into line with international benchmarks and best practices. By the end of 2030, some 64% of real GDP in Abu Dhabi will come from non-oil sources. • The oil sector will continue to grow to meet international demand and will form a major element of the Emirate’s economy. In parallel, Abu Dhabi will focus on developing other sectors which, combined, are planned to grow at an aggregate annual rate exceeding 7.5%. This growth should help the Emirate achieve a neutral non-oil trade balance. • Despite its mature character, there remain excellent opportunities for growth in Abu Dhabi’s oil and gas sector, including the areas of exploration, production, refining and transport. • Objective is to raise output of crude to 3.5m barrels per day over the next decade • An opportunity exists in the potential substitution of carbon-dioxide and nitrogen to replace significant volumes of natural gas that are currently being reinjected into the Emirate’s oil fields in order to maintain the necessary production pressure. Such solutions will create important synergies with other energyrelated undertakings, such as the Carbon Capture and Sequestration (CCS) project, which is part of the Masdar initiative, being led by the Abu Dhabi Future Energy Company. • Mubadala Development Company, the International Petroleum Investment Company and the Abu Dhabi National Energy Company (TAQA) are also pursuing exploration and production opportunities beyond the borders of the UAE, including in North Africa, Central Asia and the North Sea. • The Abu Dhabi Oil Refining Company (TAKREER) and IPIC are pursuing new projects in the refining sector, which will nearly triple the Emirate’s current refining capacity of 485,000 barrels per day. • Abu Dhabi is also making major investments in its oil and gas transportation infrastructure, supplementing its existing fleet of oil and LNG tankers via the construction of a 1.5 million barrel per day pipeline to the Emirate of Fujairah, which will allow for significant oil exports outside the Straits of Hormuz. • 50 When oil revenues are removed from the fiscal balance, Abu Dhabi’s comfortable budget surplus becomes a fairly large and possibly unsustainable deficit, (-27.7% of GDP from 2000 to 2005). Diversifying energy sources is a key strategy to ensure future energy security and Abu Dhabi will lay the foundations for this diversification by exploring alternative energy sources to reduce dependence on natural gas (which fuels 100% of domestic electricity generation). .