There are signs that oil markets have tightened in recent weeks and will rebalance over time, said Dr Sultan Ahmed Al Jaber, UAE minister of state and Group CEO of the Abu Dhabi National Oil Company (ADNOC)
“When it comes to oil, there are signs that the market has tightened in recent weeks. The OPEC-plus agreement, voluntary cuts outside OPEC-plus plus, and production shut-ins are working together to start to rebalance the market. This will take time. As economies begin to open up, demand will follow, but the path to the next normal is not a straight line,” Al Jaber said.
Al Jaber continued by highlighting how ADNOC has been reaping the benefits of its transformation over the past four years as it navigates this period of uncertainty.
“Through our transformation, we have focused on what we can control, and that is our costs. We’ve been laser-focused on being one of the lowest-cost producers in the world. And this has given us the flexibility and the resilience that we need at times like these. In this environment, we are continuing to work even harder to preserve our resources and maximise our profitability,” he added.
Al Jaber stressed that ADNOC continues to make the health and safety of its employees its top priority as it proactively responds to the risks presented by the COVID-19 situation.
“At ADNOC, we have taken additional precautions to enhance the safety of our employees, including comprehensive testing, minimising staff on site, and ensuring all office-based staff can work effectively from home. On top of that, transparent communication has been critical,” he noted.
The pandemic has highlighted the importance of three major leadership qualities – Capability, Crisis Management, and Connectivity, according to Al Jaber.
“Fundamentally, the capability of every organisation in keeping their people safe, and their operations running smoothly is being tested. At the same time, leaders are being measured against how well they manage a crisis, ensuring their organisations can run under stress. And then connectivity, how clearly leaders communicate to their people what they need to do to stay safe,” he remarked.
Concluding the majlis, Al Jaber underscored the importance of business leaders conveying a positive, optimistic, and credible way forward, with humility and honesty. “It is essential to communicate a message of unity, that we are in this together, and will find our way through together,” he said.
