Abu Dhabi National Oil Company CEO: The global energy industry must invest $4 trillion annually to meet AI demands.

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Sultan Al Jaber, CEO of Abu Dhabi National Oil Company (Adnoc), stated that with the booming development of data centers and artificial intelligence driving up demand, the global energy industry needs up to $4 trillion in annual investment.

At a conference held in Abu Dhabi on Monday, Al Jaber said that long-term demand growth will surpass the market’s short-term concerns about oil oversupply. He believes investors need to develop resources to drive the coming data boom, including transforming the power grid.

The call for this massive investment comes as most analysts are warning of an oil supply surplus next year, which could further suppress oil prices. So far this year, Brent crude prices have fallen by nearly 13%, but threats of supply disruptions due to geopolitical risks have prevented a further decline in oil prices.

Al Jaber’s views highlight the tradeoffs energy producers face between short-term market weakness and long-term structural demand growth. Just on Sunday, the OPEC+ oil-producing alliance announced that after modest production increases in November and December this year, it will pause increases in the first quarter of next year to address short-term market uncertainties.

Long-term demand outlook overrides short-term market weakness

Al Jaber said, “Short-term uncertainties are real, but long-term demand remains strong”:

“The way we address this demand should focus on data, not dramatic short-term fluctuations.”

According to his projections, after 2040, global daily oil demand will still remain above 100 million barrels. He believes maintaining such a high level of demand requires additional investment in the industry.

Al Jaber explicitly attributed part of the enormous energy investment needs to the rise of AI and data centers. The massive power consumption in this emerging field is becoming a new engine for global energy demand growth and challenges the traditional supply and demand model.

He specifically noted that to meet this demand, not only do energy resources need to be developed, but power infrastructure (such as grids) must also be upgraded. This shows that the $4 trillion in annual investment he calls for is a massive systematic project that covers energy production, transportation, and electricity distribution.

Despite concerns about oversupply in the market, major oil-producing countries including the UAE are still increasing capacity. Sultan Al Jaber said the UAE is committed to playing a leading role in this round of energy investment.

He stated that the UAE is “open for business” and revealed that Adnoc’s international business division, XRG, is seeking more deals.

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