Abu Dhabi’s Mubadala has its eye on North American shale

While North American shale could also be competitors for OPEC members, some oil-exporting international locations within the Persian Gulf are concurrently banking on the commodity as a possible funding alternative.

The United Arab Emirates is one in all them, and Musabbeh al-Kaabi, chief government of Abu Dhabi’s Mubadala Petroleum and Petrochemicals, is conserving an eye on U.S. shale.

The petrochemicals agency is a significant element of Mubadala Investment Company, Abu Dhabi’s state-owned holding firm. It operates as a sovereign wealth fund with property of greater than $360 billion, and is aimed toward diversifying the emirate’s economic system.

“We as an investor made big investments in the last 18 months, north of $12 billion dollars, and some of these big investments are happening in North America,” al-Kaabi instructed CNBC’s Hadley Gamble throughout the Atlantic Council Energy Forum in Abu Dhabi.

This was for 2 easy causes, the CEO mentioned. “It is a big market and it is enjoying a highly competitive feedstock. So we like the business in that part of the world because of these two reasons.” Feedstock refers to uncooked materials, akin to crude oil, that’s processed for conversion into a unique, or refined, product — like gasoline.

“Other parts of global energy I would say, the energy industry, the price would be set by the high cost producers going forward,” al-Kaabi added. “And who are the high cost producers nowadays? The shale producers. And we will keep monitoring what is happening in that part of the world.”

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