UAE Left OPEC to Pump More as End of Oil Era Looms, Presidential Adviser Says

DUBAI, May 22 - The UAE's decision to leave OPEC took three years to finalize. This decision stems from the belief that the world is approaching the "autumn of the hydrocarbon age." A senior adviser to the president indicated that the UAE aims to maximize its oil earnings while it still can.

The UAE officially ended its nearly 60-year membership in the Organization of the Petroleum Exporting Countries on May 1.

In the short term, this move is not expected to impact the market significantly due to Iran's effective control over the Strait of Hormuz. However, it may greatly influence OPEC's control over oil supplies once flows return to normal.

Anwar Gargash, an adviser to UAE President Sheikh Mohamed bin Zayed Al Nahyan, explained that the country's exit was largely because its production targets under OPEC were consistently below its capacity.

“We believe we are nearing the end of the hydrocarbon age,” he noted. “Therefore, if you have the capability to produce and earn income, you should seize that opportunity and invest that income elsewhere.”

The UAE's current oil production capacity stands at 4.85 million barrels per day, with plans to increase it to 5 million bpd by 2027. Before leaving OPEC and the broader OPEC+ alliance, which includes other major players like Russia, the UAE's production target was around 3.5 million bpd.

ADNOC CEO Sultan al-Jaber stated on Wednesday that the UAE will remain a responsible and stabilizing force in the energy markets.

Once allies, Saudi Arabia and the UAE have increasingly become rivals in recent years. Their disagreements extend beyond oil policies to include regional geopolitics and efforts to attract foreign talent and investment.

The tensions became publicly evident at the beginning of the year amid fighting in Yemen, where factions supported by each side clashed.