One of the primaries aims of the UAE’s oil and gas sector is to reduce reliance on the Dolphin Pipeline that brings natural gas from Qatar and become totally self-sufficient by 2030. In the oil and gas industry, countries with large land areas are dominant, with the US, Saudi Arabia, Russia, Canada, and China making up the top five in terms of production. While much smaller than these countries, the United Arab Emirates (UAE) has rich natural gas reserves, and it is looking to make its niche and become a big gas player. Given that the UAE is believed at present to have the seventh-largest oil and gas reserve globally, this is clearly an achievable project. Recent developments have been positive for the UAE’s oil and gas industry, and Markel considers the industry as not particularly risky, especially with regards to natural catastrophes.
Insuring fossil fuels remains a complicated issue. Environmental and climate change activists are pushing for insurers to abandon insuring fossil fuels, but with many economies such as the UAE relying on these resources, it will take some time before the transition to a fully renewable energy economy is complete. In the meantime, there is a thrust to transition from conventional oil to natural gas as an energy source, due to its lower carbon emissions and higher cost efficiency. The transition process will never be a straightforward one and therefore, it is essential that we demonstrate the appropriate blend of commercial pragmatism and support in the process to enable the Middle East to become a world leader in the change towards the global reliance on gas.