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➣In 1950, Petroleum Development (Trucial Coast), began drilling at Ras Sadr, Abu Dhabi. The well was found to be dry and IPC's shareholders, modern-day BP, ExxonMobil, Shell and Total, were left disappointed.

But exploration continued and, much to the delight of Abu Dhabi's 20,000 citizens, oil was eventually found in 1954 at Bab.

➣Four years later, the first offshore discovery was made at the Umm Shaif offshore field close to Das Island in 1958.

The Das project used an underwater drilling barge that had to be towed almost 11,000 kilometers from Germany by tugboats.

➣The discovery of oil transformed Abu Dhabi from rags to riches!

➣The offshore commercial discoveries followed,  Zakum in 1964 and Abu Al Bukhoosh and Umm Al Dalkh in 1969.

Onshore, Bu Hasa, Asab, Shah, Sahil and Al Dabbiya were all discovered by 1969. When production commenced in 1962, a mere 14,200 barrels left the ground every day. The following year, production had risen by more than 200 per cent to 48,200 barrels per day (bpd).

➣By  1971, Abu Dhabi become a major player in the oil industry and the fourth largest producer for the Organization of the Petroleum Exporting Countries (Opec).

Sheikh Zayed, then Ruler of Abu Dhabi in 1966, used new oil wealth to foster a sense of unity amongst the disparate emirates.

➣Sheikh Zayed put pressure on the foreign oil companies to increase exploration and production so that his ambitious modernization programme could be paid for, he maintained a cooperative attitude towards them.

➣Abu Dhabi joined Opec in 1967. With the creation of the UAE, the emirates spoke with one voice at the organization.

➣After the founding of the UAE in 1971, the Abu Dhabi National Oil Company (Adnoc) was created. It ended up taking a 60 per cent stake in the onshore production arm, Adco, and the offshore arm, Adma-Opco. Adnoc's portfolio continued to grow. Today, 16 subsidiaries are under the umbrella of the national oil company.

Crude oil production in Abu Dhabi increased steadily to an initial peak of two million bpd in 1977. After a decline in global demand, production fell, but has increased most years from 1986.

Abu Dhabi currently produces about 2.5 million bpd, making use of almost its entire capacity.

Abu Dhabi plans to increase production to 3.5 million bpd and several expansion projects are under way.

Oil has had a big part to play in bringing the nation together and, after 40 years of statehood, a big story is turning epic

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Sheikh Zayed meets with Sheikh Hamdan bin Muhammed Al Nahyan, his right hand man on Das Island.

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Sheikh Zayed meets with Sheikh Hamdan bin Muhammed Al Nahyan, his right hand man on Das Island.

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ADNOC Offshore is the largest offshore oil producer in Abu Dhabi. It is ADNOC's dedicated offshore arm and is responsible for the development and delivery of oil and gas resources in Abu Dhabi waters.
It was formed through the consolidation of two of ADNOC's upstream oil and gas companies: Abu Dhabi Marine Area Operating Company (ADMA-OPCO) and Zakum Development Company (ZADCO). With reorganization, and the expiry of the 65-year-old ADMA concessions, the offshore concessions are now split by fields. ADNOC 60% then the 40% is split into Upper Zakum.

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Organizations involved in the Oil Industry 

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Organizations involved in the Oil Industry 

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Natural Gas Council
External
The Council addresses industry issues and concerns, and issues joint statements, reports, letters and filings representing the unified views of the industry.

American Petroleum Institute (API)
External
API's website provides access to their industry standards and API Weekly Statistical Bulletin. They also publish research and statistics on a variety of oil industry topics.

American Gas Association
External
AGA's website includes natural gas policy profiles by state, American Gas magazine, a glossary, and education overview of natural gas.

Independent Petroleum Association of America
External
IPAA provides resources for independent oil and gas producers, such as talking points, press kits, and links to resources. They also publish the Energy In Depth website, which advocates for the development of onshore energy resources.

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Ruler of Abu Dhabi, Sheikh Shakhbut bin Sultan al Nahyan (centre), with IPC General Manager C.M. Dalley on his left, after turning the valve at the newly-built oil terminal at Jebel Dhanna to symbolise the first flow of oil, 21 March 1964.

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Ruler of Abu Dhabi, Sheikh Shakhbut bin Sultan al Nahyan (centre), with IPC General Manager C.M. Dalley on his left, after turning the valve at the newly-built oil terminal at Jebel Dhanna to symbolise the first flow of oil, 21 March 1964.

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Impact of the discovery of Oil on the UAE Economy 

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Impact of the discovery of Oil on the UAE Economy 

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Discovery of oil has prompted rapid growth of the UAE economy. UAE began to develop rapidly after sharp rise in prices for “black gold” in 1973. UAE has become a country with one of the highest living standards. Due to profits from oil exports transport network has greatly improved in Dubai. Today the UAE may be proud of perfectly smooth roads, modern international airports and seaports. Huge investments are made in the construction sector and tourism.
Today the government of the UAE has an active policy of economic diversification in the direction of free trade zones, tourism, finances and re - exports. And Dubai has achieved impressive results in it - a lot of companies from around the world opened in the UAE their subsidiaries, branches and representative offices and work successfully in this country.

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The ADNOC Drilling is ADNOC's oldest subsidiary. It is previously known as National Drilling Company, NDC. ADNOC Drilling is the largest drilling company in the Middle East. It drills for oil both onshore and offshore in Abu Dhabi. ADNOC has 100% equity in ADNOC Drilling.

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➤ TheNational
➤Wikipedia
➤ adnoc.ae
➤ uae-embassy.org
➤ UAE Britannica.com
➤ Gulf news
➤ BBC

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IMPORTANT DATES IN THE HISTORY OF OIL IN UAE

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IMPORTANT DATES IN THE HISTORY OF OIL IN UAE

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1966: Oil is first discovered in Dubai at the offshore Fateh field

1969: Dubai starts to export of oil. The first export shipment of oil produced from the field Fateh was around 180 thousand barrels

1972: Oil drilling exploration wells begin operations in the field at Falah. Producation begins June 1978

1973: A new oil field is discovered at Rashid and production begins in March 1979

1982: Another oil field was discovered at Margham, production started in 1984.

1999: Dubai government owned Emirates National Oil Company (ENOC) opens the first oil refinery of the company and follows a fully owned subsidiary. The refinery, which costs around Dh1.5 billion and produces 120 thousand barrels per day.

2000: Dubai joins the Dolphin project, signing a memorandum of understanding  to provide the Dubai Supply Authority with Qatari gas through the project (Dolphin)

2007: Dubai Petroleum assumes control of all oil and gas related projects in Dubai, following negotiations with international oil companies.

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ADNOC Sour Gas is a joint $10 billion venture between ADNOC and Occidental Petroleum that is expected to extract at least one billion cubic feet of ultra-sour gas per day. On a daily basis the project is also expected to produce 504 million cubic feet of natural gas, 33,000 barrels of condensates, and thousands of tons of natural gas liquids, and thousands of tons of sulphur granules. The Project is located in the Shah gas field about 210 kilometers west of Abu Dhabi. Half of this field's production will be used to service domestic demand in the UAE and minimize the need for gas imports. ADNOC Sour Gas is 60% owned by ADNOC with the remaining equity held by Occidental. It is previously known as Abu Dhabi Gas Development Company Limited (Al Hosn Gas).