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From Cop-28 diplomacy to U.S. gas deals, ADNOC pivots toward energy realism and major U.S. investments
Sultan al-Jaber, CEO of ADNOC and former Cop-28 President, delivered a dramatically recalibrated message at CERAWeek by S&P Global in Houston, declaring, “Energy realism is taking center stage.” His comments reflect a major strategic pivot from earlier calls to “transition away” from fossil fuels toward a defense of hydrocarbons as essential to climate progress.
From Climate Leadership to Hydrocarbon Advocacy
Just two years ago, al-Jaber was advocating decarbonization, urging oil and gas leaders to take accountability. At CERAWeek, however, he asserted that the energy industry is “the solution, not the problem,” emphasizing hydrocarbons' continued relevance. He accused prior climate narratives of being “hijacked” and claimed Cop-28 had succeeded in placing energy producers at the heart of climate dialogue.
Rather than pushing for fossil fuel phase-outs, al-Jaber's leadership at Cop-28 settled on language of transition, framing the oil and gas sector as pivotal to net-zero goals.
XRG: ADNOC’s New Vehicle for U.S. Expansion
Al-Jaber unveiled XRG, ADNOC’s new investment platform focused on expanding into the U.S. natural gas and petrochemical sectors. He called the U.S. market “an absolute imperative” and hinted at upcoming deals involving infrastructure and low-carbon fuels.
This follows ADNOC’s 35% stake in ExxonMobil’s hydrogen project in Baytown, Texas, highlighting the UAE's intent to deepen its presence in North America’s energy transition.
Washington’s Policy Shift Encourages Hydrocarbon Investment
A change in tone from U.S. officials—most notably energy secretary Chris Wright describing climate change as a “side effect” of development—has opened the door to increased investment in fossil-centric projects. ADNOC appears positioned to capitalize on this policy environment, aligning energy strategy with geopolitical realities.
“This is a repositioning of Middle Eastern producers—not just as exporters, but as global energy investors and influencers,” analysts noted.
Al-Jaber’s evolving message suggests a merging of climate ambition and hydrocarbon pragmatism, which could shape how energy transitions are navigated globally in the coming decade.
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