Petroleum-rich countries, seeking to end the reliance of their economies on oil trade through investments in new domains as they prepare for the diminished role of fossil fuels in the new era, currently have a golden opportunity to boost output and make the most of elevated oil prices, especially if other producers remain disciplined in accordance with OPEC rules.
The UAE, a pertinent case, have invested heavily over the past decade in facilities boosting output, the objective being to maximize oil-export revenues for the financing of the country’s economic transition.
However, OPEC will first need to accept this increased production ability before the UAE can implement it. This is a tricky issue as if OPEC accepts the UAE plan, the cartel will then also face similar-minded requests by other members, which would hammer oil prices to low levels.
The UAE seem adamant on their national plan, considering it a matter of existential significance. Saudi Arabia and Russia face a difficult mission as the two countries will need to quell the UAE intention without instigating its withdrawal from OPEC.
In general, oil producers are now striving to sell as much oil as they can, for as long as they can, taking into account that the global decarbonization effort is gaining momentum.