LONDON: OPEC+ resumes talks on raising oil output on Friday after the United Arab Emirates blocked a deal the previous day, creating a standoff that could delay plans to pump more oil through the end of the year to cool prices that have soared to 2-1/2 year highs.
Without a deal, the OPEC+ alliance could keep tighter restraints on output with oil prices now trading around $75 a barrel, more than 40 percent up this year, while consumers want more crude to aid a global recovery from the COVID-19 pandemic.
The rise in oil prices is contributing to global inflation, slowing the economic recovery from the pandemic.
The UAE put the brakes on a deal that had been pushed by top producers Saudi Arabia and Russia to increase output by 2 million barrels per day (bpd) by the end of 2021 and extend remaining cuts to the end of 2022, instead of ending in April.
Talks between the Organization of the Petroleum Exporting Countries, Russia and other producers, the alliance known as OPEC+, resume at 1:00 p.m. GMT.
Responding to oil demand destruction caused by the COVID crisis, OPEC+ agreed last year to cut output by almost 10 million bpd from May 2020, with plans to phase out the curbs by the end of April 2022. Cuts now stand at about 5.8 million bpd.
If UAE blocks any deal, the remaining cuts would likely stay in place. There is also a slim chance the deal could fall apart and all countries could pump as much as they want.
OPEC+ sources said the UAE did not oppose the principle of hiking output by the group but wanted its own production to be higher. It said its baseline — the level from which any cuts are calculated — was originally set too low, an issue it raised before but was ready to tolerate if the deal ended in April.
OPEC+ sources said the UAE wanted to have its baseline production set at 3.84 million bpd versus 3.168 million bpd now.
If its baseline is changed, it could mean adding more oil to the market than planned or other producers would have to accept a lower increase.
The UAE has ambitious production plans, investing billions of dollars to boost capacity. The OPEC+ pact has left about 30 percent of UAE capacity idle, sources familiar with UAE thinking say.
Abu Dhabi’s position signalled that “as their frustration grows, they will begin to act more in their national interest than the collective interest of OPEC and we will see more a independent course of action based on the UAE’s view of its place in the looming post hydrocarbon world,” said Neil Quilliam, an associate fellow at Chatham House.
One OPEC+ source said the UAE had argued it was not alone in requesting a higher baseline as others such as Azerbaijan, Kuwait, Kazakhstan and Nigeria had changed the level from which cuts were worked out since the deal began last year.
In the build up to the meeting this week, OPEC+ sources had said Russia was insisting on releasing more oil to the market as the rise in prices was encouraging the growth of rival US shale output — which tends to need higher prices to be economic.
OPEC’s leader Saudi Arabia had taken a more cautious approach saying fewer barrels should be released given uncertainties that remained about the course of the pandemic, with virus variants causing new outbreaks in many countries.
OPEC+ seeks consensus on oil output policy after UAE roadblock
https://arab.news/gabte
OPEC+ seeks consensus on oil output policy after UAE roadblock
- UAE against extending oil pact through 2022, sources say
- UAE wants own output set at higher level under any deal
Using space science to protect Saudi Arabia’s environment
- Kingdom is harnessing satellite technology to forecast disasters, boost agriculture
RIYADH: Learning space science has delivered significant environmental benefits worldwide, helping many countries better understand and manage climate challenges.
Saudi Arabia is now taking steps not only to explore the galaxy but also to invest in future generations who can apply space science to pressing environmental issues at home.
Last November, the Space Academy, part of the Saudi Space Agency, launched a series of seminars designed to enhance knowledge and develop skills in space science and technology, with a particular focus on Earth observation.
Running for nearly a month, the program formed part of a broader strategy to nurture national talent, raise scientific awareness, and build data capabilities that support innovation and research across the Kingdom.
As efforts to strengthen the sector continue, important questions remain: How can space science translate into tangible environmental benefits? And how large is the global space economy?
In an interview with Arab News, Fahad Alhussain, co-founder of SeedFord, highlighted the scale of the opportunity and its environmental impact.
“To be frank, the slogan that we always use in space is that ‘saving the Earth from the space.’ It is all about this,” Alhusain told Arab News.
“You can recall a lot of related environmental issues like global warming, related to forests, related to the damage that happens to the environment. Without space, it would be almost impossible to see the magnitude of these damages.”
According to Alhussain, satellites have transformed how experts observe environmental changes on Earth, offering a comprehensive view that was previously impossible.
He said that “the transformation of technology allows even the non-optical ways of measuring, assessing, and discovering what is going on in the environment … you can even anticipate fire before it happens in the forest.”
“You can detect the ice-melt down, you can get huge amount of information and can see it through the weather maps…there is a huge section in the economy for the environment,” Alhussain commented.
A 2022 report by Ryan Brukardt, a senior partner at McKinsey & Company, published by McKinsey Quarterly, found that more than 160 satellites currently monitor Earth to assess the impacts of global warming and detect activities such as illegal logging.
Brukardt cited NASA as an example of how advanced satellite tools are used to track environmental changes, including shifts in ocean conditions, cloud cover, and precipitation patterns. He also noted that satellite data can help governments determine when immediate action is needed, particularly in response to wildfires.
FASTFACT
Did You Know?
- Satellites collect massive amounts of data, and AI is used to help interpret this information more efficiently and predict future outcomes.
- The global space economy surpassed $600 billion in 2024 and is projected to exceed $1 trillion by 2030.
- Saudi Arabia has established three key entities: the Supreme Space Council, the Saudi Space Agency, and the Communications, Space, and Technology Commission.
Beyond disaster response, satellites offer vital insights for agriculture. According to Brukardt’s report, scientists can use space-based data to monitor crop development and anticipate threats to harvests, such as drought or insect infestations.
These wide-ranging applications explain the rapid growth of the global space economy.
According to World Economic Forum research, the sector is projected to reach $1.8 trillion by 2035, nearly tripling from $630 billion in 2023.
For Saudi Arabia, expanding space science capabilities could help address the country’s arid conditions by monitoring desertification and identifying sources of air pollution. Early detection of droughts, heatwaves, and crop stress could support more effective environmental planning and response.
Space-based data could also play a critical role in tracking environmental changes in the Red Sea and surrounding coastal ecosystems, strengthening marine conservation efforts and supporting the Sustainable Development Agenda.
As Alhussain emphasized, advancing knowledge in space science and satellite technology enables experts to measure environmental damage accurately and predict disasters before they occur, allowing for more effective responses.
By investing in space science education and research, the Kingdom can build national expertise, strengthen environmental protection policies, enhance food and water security, and contribute to global efforts to combat climate change—while also benefiting from the rapidly expanding space economy.
Ultimately, a deeper understanding of space and its applications offers Saudi Arabia, and the world, better tools to anticipate climate challenges, protect ecosystems, and safeguard biodiversity.
“By collecting data and using satellites, you can better analyze and measure so many things that help the environment,” said Alhussain.
“There will be patterns where you can warn people, scientists and decision makers to do something about it.”
