United Arab Emirates Energy Profile 2012

Mining and oil industry is an important source of national profits in the Emirate of Abu Dhabi. Proceeds derived from this activity represent a main resource for the general budget of the emirate. Crude oil and natural gas comprise the most important components of extractive industry, while other activities of extractive industries such as mining and quarrying constitute a very small proportion.
The extractive industry's contribution to the GDP of the Emirate of Abu Dhabi reached around 49.4% in 2009. Crude oil is major propeller of economic development in the emirate. The amount of production of petroleum derivatives in Abu Dhabi totalled 17,425 thousand metric tons in 2009 compared to 16296 thousand metric tons in 2008.
Oil prices through the period 2008-2009 witnessed strong fluctuations, when the price hiked up to US$131.2 per barrel, in mid-2008 and dropped sharply at the end of the year, due to the global financial crisis to about US$38.6 per barrel, to gradually rise again in 2009 to even out at the end of the year, when the average basket price of "OPEC" registered about US$ 61.1 per barrel in 2009.

Value Added: The rise in oil prices, as well as the increase in oil production affected the value added in extractive industries, as the value added in crude oil and natural gas, which constitute the main components of these industries, increased by almost 100%.
Value Added: The value added in the activity went up from Dh147.7 billion in 2004 to Dh269.9 billion in 2009, marking an annual growth rate of 12.8% on average during the period (2004-2009).
It should be noted that the value added in crude oil and natural gas had fallen from Dh405.8 billion in 2008 to Dh269.9 billion in 2009, with a decline of 33.5%. This was attributed to the drop in both oil prices, and quantities of oil exported in 2009, as compared to 2008.
Gross Fixed Capital Formation: The gross fixed capital formation in the activity of the extractive industries rose from Dh6.9 billion in 2004 to Dh9.3 billion in 2009, with an annual growth rate of around 6.2% on average during the period (2004-2009). However, the gross fixed capital formation in extractive industry decreased in 2009 by 12.3% compared to 2008. This decrease was attributable to the impact of global financial crisis on fixed capital formation in extractive industries. Public companies accounted for the largest proportion of gross fixed capital formation in extractive industries, while the contribution of private sector companies to gross fixed capital formation remained low.

Abu Dhabi Government is working towards continued development of electricity, gas and water, to cope with the increase in population and the needs of economic growth in the emirate. Electricity, gas and water activity has been restructured; and the Water and Electricity Authority was established in 1998. In addition, the privatisation program of the electricity, gas and water activity has been implemented.
The realization of the privatisation program brought about significant positive impact on the development of the activity, in harmony with the plans of the Government of the Emirate of Abu Dhabi. Efficiency was enhanced through the adoption of best management practices; and better means of utilisation of resources were introduced to ensure the sustainability of development. This sector is entrusted with the responsibility of production and distribution of electricity and water to consumers all over the emirate.
Value Added: The value added in electricity, gas and water have risen from Dh6590 million in 2004 to Dh15 295 million in 2009, growing at an annual rate of 18% on average during the period (2004- 2009). The growth rate of activity in 2009 reached 8%, which was a rate lower than previous years; however it was considered as a high rate and an indicator of the continuous pace of economic and population growth witnessed by the emirate over the past years.
Gross Fixed Capital Formation: The gross fixed capital formation in the activity of electricity, gas and water made up from Dh5230 million in 2004 to Dh9143 million in 2009, growing at an annual rate of about 11.8% on average during the period (2004, 2009). Growth rate of fixed capital formation in the activity of electricity, gas and water amounted to 5.8% in 2009.