Why the world needs a more diverse energy mix

The 42nd edition of Adipec, which ended in Abu Dhabi this week, has been an important reminder of the critical role the Gulf plays in the global energy market. More than this, however, the event also highlighted once again how the question of energy security reaches well beyond the oil and gas industry, touching everything from AI to transportation and the political fortunes of entire governments.

The strain of recent months, particularly the conflict involving the US, Israel and Iran – as well as Houthi attacks on Red Sea shipping – has exposed the vulnerability of the energy supply chains that are essential to the global economy. The Gulf remains indispensable to global hydrocarbon exports, and the security challenge is shared by energy-importing nations everywhere.

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It is this context that gives the case for diversifying energy sources particular urgency. So far, the transition towards renewables has largely been framed around reducing emissions and meeting climate targets. The UAE has embraced that agenda, from hosting Cop28 in Dubai to investing heavily in solar power, nuclear energy and economic diversification.

Yet there is another compelling reason to speed up this transition: energy independence. Solar, wind and nuclear power can reduce reliance on internationally traded hydrocarbons, leaving economies less exposed to disruption and price fluctuations. Advances in battery storage are also helping to address the reliability of renewable generation, making diversified energy systems more efficient and practical.

India offers a useful example. In an interview this week with The National, Neeraj Mittal, secretary of the country's Ministry of Petroleum and Natural Gas, described how New Delhi expanded its crude oil sourcing to 43 countries. The UAE has emerged as a major partner, supplying between 15 and 20 per cent of India's total energy imports. The lesson is that dependence on any single source or geography carries risks.

Meanwhile, demand for energy is growing at a remarkable pace. Speaking at Adipec earlier this week, OpenAI chief executive Sam Altman identified energy as his biggest challenge, warning that despite falling power requirements for individual AI queries, overall consumption is surging. As he observed, costs can fall in almost every way, except that “atoms are still atoms”.

So far, the transition towards renewables has largely been framed around reducing emissions and meeting climate targets

Similarly, Charles Edouard Mellagui, the chief executive of UAE cable maker Ducab, was clear that growing demand meant hydrocarbons alone would not be enough in the future. “We will need solar. We need wind. We need nuclear. We need battery storage,” he told The National at Adipec this week.

The discussions held by thousands of energy executives, experts and policymakers in Abu Dhabi must translate into investment in generation, storage, grids and stronger supply chains. The Emirates’ own experience shows that economic growth and energy diversification can go hand in hand.

Simply put, the world needs more energy. Meeting that demand while reducing vulnerability requires international co-operation and sustained investment. Adipec provided an important forum for those conversations, and the task for those in positions of responsibility is to turn its urgency into meaningful action.