The United Arab Emirates has set a new record for oil production, hitting 5.3 million barrels a day in September, according to the International Energy Agency. This follows the completion of repairs at key facilities like the Ruwais refinery and the Fujairah bypass port, which was designed to ensure oil flow even if the Strait of Hormuz is blocked. However, the UAE's energy sector is still reeling from extensive damage, with gas production and storage systems far below pre-war levels.
Despite the record oil output, the UAE's gas sector is struggling. ADNOC Gas reported a 32.5% drop in domestic gas production and a 54.5% decline in export liquids in the second quarter. The company's share of LNG also fell by 63%, leading to a significant drop in revenue, EBITDA, and net income. The damage to critical infrastructure, including the Habshan gas complex and Borouge's petrochemical plant, has left the sector in a fragile state.
Fujairah, the bypass port that was meant to safeguard oil exports, has faced numerous attacks since the war began. Its refined-product exports have plummeted, with loadings dropping to just 440,000 barrels a day during a critical period. Fuel reserves, which were supposed to act as a buffer, have also been severely depleted, with stocks down 65% from pre-war levels. This has left the UAE with limited capacity to absorb shocks, raising concerns about its energy security.
The UAE's recovery has been partial, with some facilities restored but others still operating at reduced capacity. While the ADCOP pipeline from Habshan to Fujairah has helped maintain some oil flow, it can only handle about a third of the traffic. A second pipeline is planned for 2027, which may provide some relief in the long term. However, the current situation highlights the vulnerabilities in the UAE's energy infrastructure, despite its record oil production.