As oil prices surge amid conflict in the Gulf, energy leaders at ADIPEC in Abu Dhabi are confronting two major challenges: securing global supplies and meeting soaring electricity demand from artificial intelligence.
The Middle East conflict, which began on 28 February with U.S. and Israeli strikes on Iran, continues to unsettle oil markets. Brent crude is trading at around $104 a barrel following limited U.S. strikes on Iran's Qeshm Island, near the Strait of Hormuz, as Qatari mediators pursue a possible agreement between Washington and Tehran.
Around 40 per cent of Gulf crude now bypasses the strait through pipelines, compared with 17 per cent before the conflict. Meanwhile, the Houthi blockade of Saudi shipping has sharply reduced the kingdom's Red Sea exports.
These disruptions have dominated discussions at ADIPEC, where energy executives and policymakers are calling for diversified supply routes, stronger domestic manufacturing, strategic reserves and greater international cooperation.
The event, held at Abu Dhabi's ADNEC centre, runs until Thursday and is expected to attract more than 239,000 visitors. Its programme features more than 380 sessions covering oil and gas production, artificial intelligence (AI), electricity networks and the future energy workforce.
But beyond the immediate crisis in oil markets, another challenge is taking centre stage: how to power the rapid expansion of AI without putting further strain on global energy systems.
Energy companies have delivered a consistent message since the conference opened: global supply chains must become more resilient.
Baker Hughes urged energy companies to diversify supply sources and reduce reliance on individual transport routes.Siemens Energy CEO Christian Bruch highlighted stronger local manufacturing, strategic storage and diversified global supply chains as safeguards against logistical disruption.
Egyptian Petroleum Minister Karim Badawi stressed that meeting rising global energy demand would require collective action, with no single country or company capable of delivering the necessary supplies alone.
Azerbaijan's Deputy Energy Minister Elnur Soltanov echoed that message, arguing that cooperation is essential to national energy security.
Speaking at the session “Beyond borders: can national energy strategies deliver a connected global system?”, Soltanov drew on game theory to explain why countries must work together.
Elnur Soltanov, Deputy Energy Minister of Azerbaijan
He also identified trust as a crucial element of successful partnerships, pointing to Azerbaijan's record of maintaining its production-sharing agreements without amendment as evidence of its reliability.
With the Strait of Hormuz repeatedly disrupted, contractual stability has become an increasingly valuable asset for energy producers seeking to reassure international partners.
Azerbaijan's state energy company SOCAR has maintained a prominent presence at ADIPEC, with a large exhibition stand and delegation engaging visitors in discussions on potential deals.
Artificial intelligence has emerged as another major theme at ADIPEC, with industry leaders warning that electricity infrastructure is struggling to keep pace with rapidly expanding demand.
Schneider Electric CEO Olivier Blum said industrial electrification, urban growth and electric vehicles were already driving up power consumption, with AI adding further pressure.
AVEVA CEO Caspar Herzberg warned that AI infrastructure was expanding faster than the energy systems needed to support it.
Speaking during the session “AI-driven energy demand: planning infrastructure for an accelerating growth curve”, Herzberg highlighted a growing mismatch between the speed of data centre development and the time required to deliver essential infrastructure.
While developers and investors can move quickly, electricity providers, water utilities, local authorities and regulators operate on different timescales. Herzberg argued that governments must coordinate long-term planning to bridge the gap.
Caspar Herzberg, CEO of AVEVA
His remarks point to a broader shift in how the industry defines energy security.
For years, the focus has largely been on oil supplies and shipping routes. The AI boom is adding a new dimension: ensuring that electricity, water and regulatory approvals are available when data centres need them.
AI offers opportunities for energy and chemicals
Despite concerns over rising electricity consumption, industry leaders also highlighted AI's potential to improve productivity and accelerate innovation.
Covestro CEO Dr Markus Steilemann said artificial intelligence could transform materials research, allowing scientists to tackle increasingly complex challenges beyond the limits of traditional methods.
Speaking at the session “Petrochemicals: converting structural demand growth into sustained profitability”, he argued that the conventional approach of researchers spending decades specialising in a single field was no longer sufficient.
Dr Markus Steilemann, CEO of Covestro AG
Mubadala Energy Chief Financial Officer Masroor Jilani brought the discussion back to commercial realities, saying the market had sufficient resources and demand, but investment returns would ultimately depend on successful project delivery.
The United Arab Emirates is using ADIPEC to reinforce its position as a global centre for energy investment and cooperation, as regional instability highlights the importance of alternative supply routes.
The Fujairah export route, which provides an alternative to shipping oil through the Strait of Hormuz, has become particularly significant amid the disruption.
The scale of ADIPEC also underscores Abu Dhabi's role in bringing together governments, investors and energy companies at a time of heightened market uncertainty.
Alongside international energy security, the conference has highlighted domestic sustainability initiatives.
On the third day, the Abu Dhabi Chamber of Commerce and Industry recognised 14 companies under its Sustainability Label programme, bringing the total number of recipients to 68.
The companies span energy services, manufacturing, construction, technology, food production, healthcare and logistics, reflecting the growing reach of environmental, social and governance (ESG) reporting requirements beyond the oil and gas industry.
ADIPEC continues at ADNEC until Thursday, with the outcome of Qatar-mediated U.S.-Iran talks likely to have a greater immediate impact on oil prices than decisions made inside the conference halls.
Yet the discussions in Abu Dhabi point to a longer-term shift in the industry's priorities: building more resilient supply routes, expanding strategic storage and developing electricity networks capable of supporting the AI revolution.
Whether the Gulf conflict eases or intensifies, the message from ADIPEC is clear: energy security now means protecting oil supplies while preparing for a future powered increasingly by data.
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