Hormuz disruption drained nearly 1bn barrels of crude, ADNOC chief tells ADIPEC
Nearly one billion barrels of crude have been drawn out of global inventories by disruptions to energy flows through the Strait of Hormuz, ADNOC managing director and group chief executive Dr Sultan Al Jaber told the opening session of ADIPEC 2026 in Abu Dhabi, warning that the world has eroded its supply buffers.
Al Jaber, who is also the UAE's minister of industry and advanced technology, said diesel inventories in some markets had fallen to their lowest seasonal levels in 35 years, while other markets face a 600 billion cubic feet gap in LNG supplies. The strain has moved beyond production to delivery: logistics costs that accounted for less than 5 per cent of the price of a barrel before the disruption now exceed 30 per cent, he said. "Energy security is not only measured at the point of production. It is now also measured at the point of delivery," he told delegates.
He set out five priorities for the industry: expanded strategic storage and larger product stockpiles with flexible refining capacity closer to consumers; reliable routes to market built ahead of disruption; intelligent energy systems that anticipate risk rather than merely automate; policies, financing and insurance that let capital follow confidence; and investment in people, which he called the most important. "Systems don't carry responsibility, people do," he said.
Al Jaber credited the UAE's resilience to years of preparation rather than crisis response, citing ADNOC's integrated trading operations, logistics investment and the XRG portfolio across gas, chemicals and energy solutions. He also pointed to the agreement ADNOC announced with OpenAI and G42 to deploy artificial intelligence across field development, well management and commercial activities, which he said would make ADNOC the first energy company to deploy OpenAI Frontier. "From the moment ChatGPT was born, the world has asked what energy can do for AI. And now, together, we will find out what AI can do for energy," he said.
He reiterated the UAE's commitment to dialogue and diplomatic solutions to bring stability to markets and energy flows, and paid tribute to the country's armed forces, civil defence, firefighters, first responders and ADNOC frontline staff. ADIPEC 2026, held under the patronage of UAE President Sheikh Mohamed bin Zayed Al Nahyan and hosted by ADNOC at the Abu Dhabi National Exhibition Centre, expects record attendance of more than 239,000 people from over 170 countries, with 2,250 exhibiting companies and 1,800 speakers.
