Energy Security Overhaul Urged After Hormuz Disruption
Dr Sultan Al Jaber called for a rethink of energy security as shipping disruption in the Strait of Hormuz drained nearly one billion barrels from global oil inventories.
Updated on Nov. 2, 2026 in Oil and Gas
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Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and ADNOC group chief executive, called for an overhaul of energy security at the opening of ADIPEC in Abu Dhabi. Disruption of shipping through the Strait of Hormuz drained nearly one billion barrels from global oil inventories.
Why it matters
The disruption exposed weaknesses in global energy supply chains that were optimised for just-in-time supply and left the industry unprepared. Its effects are reaching beyond crude oil into diesel and gas markets.
Shipping and logistics costs have risen from less than 5 per cent of the cost of a barrel to more than 30 per cent, according to figures cited at ADIPEC. Some markets also face a 600 billion cubic feet gap in LNG supplies, and the timeline for closing it has not been stated.
The players
Dr Sultan Al Jaber
Dr Sultan Al Jaber is the UAE's Minister of Industry and Advanced Technology and managing director and group chief executive of ADNOC, the state-owned Abu Dhabi National Oil Company.
OpenAI
OpenAI is the San Francisco artificial intelligence company behind ChatGPT, whose chief executive Sam Altman attended the ADIPEC opening.
The details
Dr Al Jaber outlined five priorities for strengthening energy security: accessible supply, routes to market, operational intelligence, investment confidence and people. ADNOC also announced an agreement with OpenAI and G42 to become the first energy company to deploy OpenAI Frontier across field development, well management and commercial operations.
Timeline
Monday: Dr Al Jaber delivered his remarks at the ADIPEC opening in Abu Dhabi.
Market Landscape
The energy sector spent decades optimising for just-in-time supply to reduce inventory costs, a model the Hormuz disruption has now strained. Shipping's rise from under 5 per cent to over 30 per cent of a barrel's cost shifts the economics that producers and buyers have relied on.
Higher shipping and logistics costs now make up a much larger share of what a barrel costs, which can feed into fuel and energy prices. Diesel stocks at 35-year seasonal lows in some markets point to possible pressure on transport costs.
The takeaway
Energy security now depends as much on logistics, routes and operational intelligence as on raw supply. Watching shipping costs as a share of barrel prices offers a useful signal of how disruptions are passing through to markets.
Further reading
Explore more on Oil and Gas for context on how shipping disruptions affect crude and gas markets.
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