When AI meets EQ: How these leaders are rethinking the future of work
digital transformation
, the intersection of artificial intelligence and emotional intelligence is becoming a defining force in shaping the
future of work
. But are leaders evolving fast enough to balance both?
According to a global survey by Six Seconds, titled '
AI and EI: Workplace Status Report
,' emotional intelligence scores have declined by 5.5% since 2019, with rising levels of stress, burnout, and loneliness reported across the workforce.
This emotional downturn hasn't been caused by AI alone, but its rapid implementation, often without adequate focus on the human experience, has become a contributing factor to what experts are calling a metacrisis of disconnection at work.
In other words, the promise of smarter systems must be matched by smarter, more empathetic leadership. Without this balance, organisations risk creating more disengaged environments even as they invest heavily in innovation.
To explore how leading organisations in the Middle East are navigating this delicate balance, using AI to enhance, not erode, the human connection, ETHRWorld Middle East organised a thought-provoking panel discussion titled "
AI meets EQ: Shaping the future of HR leadership in the age of connection
," at The Economic Times Future Forward Middle East Summit 2025.
During the session, Global Head - Solution Advisory - HCM & Global Payroll at Ramco Systems; Ahmed Al Mheiri, Senior Vice President, Group Human Capital Shared Services at ADNOC; Carys Richards, Executive Vice President People - International at Mastercard; Suhrid Chaudhuri, Executive Vice President, Group People Strategy at Al Ghurair; and Haitham Akl, Chief Human Capital Officer at Ajlan & Bros Holding (Chair) shared their insights on the evolving role of AI and emotional intelligence in reshaping the employee experience and driving business success.
Let's explore a few key takeaways from their discussion.
Implement AI with a conscious focus on human emotions and needs
Ahmed Al Mheiri discussed how AI and emotional intelligence (EQ) work hand-in-hand to enhance human capital strategies. 'AI can revolutionise how we work, but it must be embedded thoughtfully with an understanding of human emotions and needs,' he explained.
He further shed light on several initiatives at ADNOC, showcasing how the company seamlessly integrates AI with empathy to drive success. One notable example is the 'AI to AI: The Power of Artificial Intelligence' initiative, which aims to guide employees through the technological transformation with empathy and care.
Another successful initiative he highlighted is the 'AI for Everyone' training programme, which has successfully educated over 30,000 employees so far. This initiative was designed not only to upskill employees but also to ease any anxieties surrounding the introduction of AI.
All these initiatives play an essential role in
blending AI with emotional intelligence
, further ensuring that employees feel empowered rather than overwhelmed by the new technology. As a result, it leads to smoother transitions, higher employee engagement, and better outcomes for both employees and the organisation.
Ensure AI complements, not replaces, the human connection
Carys Richards emphasised the importance of AI complementing, rather than replacing, the human connection in the workplace. She shared an example from Mastercard, where AI is integrated into their talent marketplace, 'Unlocked', to match employees with personalised learning opportunities and mentors.
In her view,
AI aids employees
in identifying career growth paths, but it's the leaders who provide the critical context and direction. 'Leaders bring the personal touch that AI cannot, guiding employees on how to leverage the tool for real, meaningful growth,' Carys explained.
This dynamic approach ensures that AI is used as a starting point for meaningful conversations, enriching the employee experience while reinforcing the value of human leadership in career development.
Empathy complements AI in creating people-centric HR solutions
Shailaja emphasised that AI must be complemented by an empathetic HR approach. 'AI can identify distress patterns, such as financial strain, which can help HR leaders offer proactive support to employees. This combination of AI and empathy fosters trust and retention,' she noted.
She further highlighted how AI in payroll and HR systems personalises employee experiences, improving both efficiency and satisfaction. For example, AI-powered chatbots streamline payroll queries, while AI detects anomalies in payroll data, preventing errors. Additionally, AI aids compensation reviews by aligning performance data with company budgets, ensuring fair decisions.
Challenging the status quo: AI's impact on workforce planning and human-centricity
Suhrid Chaudhuri took a bold stance during the discussion, challenging the conventional narrative around AI and emotions in workforce planning. For him, AI is simply a tool, much like fire was to early humans or engines were during the Industrial Revolution. It's not something to fear, nor is it a threat to human-centric strategies; it's an opportunity to innovate and evolve.
AI, he stressed, should be seen as a powerful tool that enables better decision-making, not a replacement for human insights. 'Our approach is to use AI to drive better decisions, freeing up time from mundane tasks so we can focus on adding value,' Suhrid explained.
This mindset, he argued, is key to transforming workforce planning. AI allows companies to process vast amounts of data quickly, enabling more relevant and timely insights for decision-makers. However, the true effectiveness of AI depends on the quality of data fed into these systems. Without accurate, relevant input, AI can only produce so much. 'It's about the data we input, AI tools are only as good as the data they process,' he emphasised.
Suhrid highlighted Al Ghurair's approach, which focuses on data-driven decision-making. They've fostered a culture where data 'ninjas', dedicated teams of data experts, ensure that AI tools are fed with clean, actionable data. This approach not only enhances productivity but also ensures that workforce planning is more agile and adaptive to today's volatile, fast-paced environment.
From Suhrid's perspective, AI helps companies better navigate unpredictability by identifying trends and patterns that help them plan and adjust strategies in real time, without losing the human touch.
The future of work: Embed AI into the business evolution
To conclude, Haitham Akl shared his thoughts on AI's integration into business evolution that will define the future of work. 'AI is an enabler, not a replacement for human effort. It should enhance what we do and make us better,' he explained.
He further emphasised that the depth of AI integration within a company depends on how each leader chooses to embrace the technology. In his vision, focusing on AI as a tool to empower employees and make smarter business decisions, companies can leverage AI to enhance both their processes and their people.
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Mint
07-07-2025
- Mint
Emergency plan to bypass the Strait of Hormuz will be a template for future crude emergencies, says Indian Oil chief
Gift this article NEW DELHI :India's new playbook of having its West Asian oil suppliers on board during the Israel-Iran conflict to bypass the Strait of Hormuz blockade will come into play during future emergencies, said Arvinder Singh Sahney, chairman, Indian Oil Corp. Ltd (IOCL), in an interview. India's new playbook of having its West Asian oil suppliers on board during the Israel-Iran conflict to bypass the Strait of Hormuz blockade will come into play during future emergencies, said Arvinder Singh Sahney, chairman, Indian Oil Corp. Ltd (IOCL), in an interview. The national oil companies of Saudi Arabia and the United Arab Emirates (UAE) assured India of uninterrupted supplies through all possible options during the June conflict-led uncertainty in the global oil market, he added. On 25 June, Mint reported the Centre was activating an emergency strategy to ensure uninterrupted oil supplies. This included a plan to bypass the critical Strait of Hormuz in Iranian waters through two pipelines—Abu Dhabi National Oil Co. (Adnoc)-operated Habshan-Fujairah strategic oil pipeline and Saudi Arabian Oil Co. (Saudi Aramco)-operated East-West crude oil pipeline—and tap into the global reserves and portfolios of Adnoc and Saudi Aramco. India also explored options to increase supplies from other countries and regions, including Russia, Brazil, Latin America, Canada, and the US. The new manual is of immense significance to India, given that West Asian supplies comprise nearly 40% of its oil imports. Sahney said during the 10-day Israel-Iran conflict, not a single cargo was delayed, deferred or cancelled. And, the way India and the oil marketing companies (OMCs) navigated the conflict, the IOCL was now confident of navigating any exigency to meet India's growing energy demand. On shrinking discounts on Russian oil, he said the fall in discounts comes amid the decline in international oil prices. In the interview, he also discussed IOCL's green-energy expansion plans, saying the company would consider acquisitions, albeit smaller ones. Given that the world has gone through an interesting episode of late with the conflict in West Asia, how well prepared is India and also Indian Oil? Actually, whatever happened reaffirmed our belief in ourselves as IOCL and India as a whole that we can manage the situation. If this had resulted in blockages on the strait, it could have had some impact, but at the same time, I will say that we were fully prepared for it. Today, approximately 40% of India's crude needs are being met from the Middle East (West Asia), which could have been impacted to a certain extent. At the same time, I can confidently say to myself and to customers that we have a very diversified crude basket today. We have another 20-25 countries, which are supplying to us. Russia is there, West African countries are there, Latin American countries are there, Mexico is there, Brazil is there. The US itself is there, and then Canada is there. So, there are so many other sources, and we had alerted, or we had started talking, or we are already in talks with most of these other suppliers, and they were ready to step up. They were ready to supply crude to us at a very short notice, if at all, the situation arose. Also Read | Indian Oil draws up green hydrogen fuel retail network plan But we were very comfortable, and it gave a lot of confidence to us also... and I should mention the leadership of our ministry of petroleum and natural gas, especially the special mention goes to the cabinet minister, Hardeep Singh Puri. Under his leadership, the whole OMC group, the whole oil and gas sector, was fully geared up, keeping a very close watch on the situation. Almost every day, we had briefings with him, and we had a consolidated approach. But luckily, the conflict subsided. What we could garner was that a plan B was already ready. The strategy involved two pipelines—the Aramco-led pipeline and the Adnoc-led pipeline—giving you access to the Gulf of Oman and the Red Sea. It also involved global reserves, be it in South Korea or Japan, of Adnoc and Aramco. So, even if their production or supply got impacted, they could have supplied you with oil from their reserves. Now, these are strategic pipelines, and the respective governments need to allow the crude to pass to a specific customer. How were you able to do this? I must say you are extraordinarily informed about these things because we have not discussed these things in public as of now. I am not saying you are saying, but most of it makes sense. But, I should say we have a company-to-company relationship, and those have come good, and we have gained confidence. We got promises from these companies that they will do whatever is required to be done. I will not mention in those many words that you are saying that from here, or from there, or those things, but they gave us confidence that they will also be pitching in, and we had another plan also for increasing the inputs from other sources, other than the Middle East. Most of it was company-to-company. Prime Minister Narendra Modi is in Brazil as part of his five-nation tour. How important is Brazil to our strategy? Brazil is a brotherly country, I will say. It's very close to us economically and in the process of growth. They are also part of Brics (an intergovernmental organization comprising ten countries: Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the UAE). And there, we have a very close relationship with them, and we have a lot of things to learn from Brazil. Not only in fossil fuel, considering it is one of the 40 countries that will be giving us an alternative source of fuel. But what we are learning from them is the strides that they have made in the biofuel industry, how they have converted their strength in agriculture into replacing it with their dependence on imported oil. That is what we are following. I should not be shy about saying that we are following their pathway. The 20% ethanol blending in MS (motor spirit or petrol). We are following in their footsteps. And then, they are already at 27%, and now they have given a mandate to go up to 34%. So, we are learning from their institutions. We are learning from their intelligentsia. How they are doing it, what possible approaches they are taking, and those things are helping us. And today, they are leaders. They are the leaders using bio-energy as a replacement for fossil fuel. That helps in transition, net zero, and reducing the dependence of a country like us and Brazil on imported oil. Also, just to take you back to West Asia, will this plan B, which was put in place, be the template to be followed in the case of any such exigency happening in the future? More or less, yes, because in normal conditions, we are very close to our West Asian friends. We are not going to en masse change something. In a normal condition, we will continue to source most of our energy from West Asia. That continues to be the template, and at the same time, we have already diversified our sources, so that will continue. They are the natural suppliers of energy to us. And they have been with us through thick and thin for the last 40-50 years. Our supply from Russia, which was less than 2%, has gone up to 37%, and it keeps on fluctuating depending on what kind of discount they give us. There are two parts to this question. One part is obviously that during a crisis like this, supplies get taken care of. Then comes the question of pricing. The discounts that the Russians were giving us have come down. Also, why are we not getting any long-term supplies from Russia? Earlier, we had a long-term deal with them. Now, some of other Indian refiners have those long-term deals with them. So there's a limited amount of crude for which they have done a long-term deal with somebody else. Then, it is obviously not possible... Do we have long-term deals with Russia today? Some of them. From the grapevine, I can say that... What about Indian Oil? No, Indian Oil doesn't have. Have talks with Rosneft—a Russian state-run oil and gas company—resumed for a long-term contract? In this crude business, there is no stoppage or starting of dialogue because we are constantly in touch with all of them. We are in touch with all of them, and they are in touch with us because it is a constantly evolving business. Where else will you sell, and where else will we source from? It is a good relationship between suppliers and buyers, and it continues. So, regarding Russian crude oil discounts coming down, how do you deal with that? It's a natural thing to happen. Because the international prices have also come down. Brent itself has come down, so they have to allow them to follow their own price gaps and those price gaps in the international market, if there is a huge difference, then there can be a potential for discounts. If those two gaps come down, then naturally the discount comes down. The split between long-term and spot used to be 70 to 30. Today, 60 is long-term, and 40 is spot. Do you think the long-term split will come down further? Will it be an equal split between long-term and spot? Opportunities are immense, and the appetite is limited for risk. So long-term and short-term are very dynamic kinds of things that are going to happen. Each company will have its own different strategy, even amongst our OMCs, we have different strategies and let alone the private sector. All of them have their own strategies, whether they get a good deal in the long term, whether they are not getting a good deal in the long term in that particular year, that all depends on what is good commercially. Also Read | India eyes storing its oil in Japan, South Korea, Singapore How I can source, how I can use my intelligence, my market knowledge, and my opportunistic stance at that point in time will dictate how much long-term I can secure and how much I have to go for spot. This is all driven by commercial (interest). Currently, some insurance contracts do not include war in their force majeure provision. After this recent conflict, do you think the insurance contracts will start reflecting this? I don't think so. This was a blip that has happened. I don't think that every day this war is going to erupt, and this is not going to change how things have operated for so many decades. I don't think so. I am a personal believer that the status quo will be restored, and anyway, we were not at all affected that much, I can ensure that during these whole 10 days, not a single cargo was delayed, deferred, cancelled or anything. Nothing of that sort happened. Everything went smoothly. They also want business to happen, not be affected by war. We also want businesses not to be affected by war. And that is what we have learned from these standards that if we have reached this condition without any disturbance, then I think we can manage the situation in the future also, with this kind of situation. How steep was the learning curve, both for Indian Oil and the country's oil and gas industry? As an organization and for India, this was taken care of because we have very mature, learned, and experienced people in the ministry and in our OMCs. But personally, yes, it was a good learning curve. And yes, there were some butterflies in the stomach, but it all came good. It gives confidence, and now I can give confidence to customers that we are in good shape. With hopes of India-US energy trade reaching $20 billion as talks on the bilateral trade agreement are underway, should we expect more long-term deals, both in terms of crude and LNG? Long-term deal... I am not very sure as of now, but the spot cargoes keep coming. They have already been coming. If they are competitive, more numbers will come here, and because of these situations that are going around in the tariff war and these things, whatever energy was getting transferred from the US to China, if that needs a different home, or needs a different market, then India is an obvious choice. So, if they want to come here on a competitive basis, if they want to give us better deals than what we have on our plate, we are willing to do that. You have a long-standing relationship with Rosneft. Will you be interested in taking over their stake in Nayara? Has that offer come to you? No. It's an open offer; it's in the market... I am totally not interested. So, we have not inquired about it. You have a play in the green hydrogen space as well. There are several companies now looking to have a presence further down the line in the green hydrogen space. What kind of competition do they present to you? It's okay. This play has to come, and with India's energy needs, you are aware that in the next 15 years, we are going to at least double our energy requirements. We are at around 800-900 million tonnes of oil equivalent today, and that is going to be at least 1,800 to 1,900 million tonnes of oil equivalent going further into 2040-45. So, if energy is doubling by itself, then it is enough for everyone. In India, it is not going to be either, or it is not going to be replaced by something if a new form of energy comes in and starts developing. It doesn't mean that it is going to hurt my oil and gas sector, or if some renewable energy or hydrogen comes, it is not going to hurt us. The cohort that you belong to, like the ONGCs and NTPCs of the world, has made acquisitions in renewable energy space. Is that something that you will be looking at? Yes, we will also. We are also on the lookout, and we will be going forward. We will not go for big; we will go for smaller ones. With Trump's decision of pulling out of the Paris Agreement and focus on fossil fuels, there are several large consulting firms that have absolutely shut down the ESG (environmental, social, and governance) consulting practices in Europe and elsewhere. Does that take away our focus from ESG? When you talk of the US, particularly, or countries, which are, I'll say, not the US, but I'll bracket them into countries that are rich in natural resources in terms of fossil fuel, in terms of oil and gas. So they had a choice of converting their energy sources from fossil fuels to sustainable ones for the cleaning of the environment, or for addressing climate change, or those things. So that focus a government can come and change, and the government can come and again reinforce this. That is a choice that they have, but for us, it is not a choice. For us it is an imperative, for us it is a window of opportunity that we have that today when we are funding $130 billion per year for importing the crude oil, then this is a great opportunity that has come to us in form of the renewables in form of the bio-developments in form of green hydrogen, in form of all kinds of renewable and sustainable energy sources. These are going to reduce my dependence on imported oil. Nuclear power is a major focus area now. Indian Oil already has a tie-up with Nuclear Power Corporation of India Ltd, signed in 2011. Several companies are now looking to enter this space. What will be your play in the nuclear and SMR (small modular reactors) space? Did you participate in the request for proposal (RFP) process floated by NPCIL? We have not participated in the RFP process, but we are looking into it in a renewed manner…It was 10 years ago when we tied up with NPCIL. But now there is a renewed energy to it... These are Bharat SMRs, (with) 220MW (capacity). This is a decent play. People will get into it, and we are also seriously looking into either these ones or the bigger ones... We are looking at both. Because our refineries typically consume that much of the amount given in one of the BSRs. Our bigger refineries are captive consumers for that much amount. So, that is there, but we are looking at both options. We are looking at these ones also, and we are looking at the bigger ones. Topics You May Be Interested In
Mint
25-06-2025
- Mint
Here's New Delhi's game plan to solve the Hormuz riddle
New Delhi is activating an emergency playbook to safeguard its oil supplies, as a fragile truce prevails in West Asia after 10 days of conflict. The strategy involves bypassing the critical Strait of Hormuz in Iranian waters via two pipelines; tapping into the global reserves and portfolios of Abu Dhabi National Oil Co. (Adnoc) and Saudi Arabian Oil Co. (Saudi Aramco); and significantly increasing imports from the US. The two pipelines, which run east to west across the Arabian peninsula, may be tapped if Iran closes the Strait, a choke point vital for global energy supplies. The first is Adnoc-operated 360-km Habshan-Fujairah strategic oil pipeline with a 1.5 million barrels per day (mbpd) capacity that opens to the Gulf of Oman; and the Saudi Aramco-operated 1,200-km East-West crude oil pipeline with a 5 mbpd capacity that offers access to the Red Sea. State-run refiners Indian Oil Corp. (IOC), Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL) are in touch with suppliers Adnoc and Saudi Aramco to use the pipeline route in case of an emergency, the people cited above said on the condition of anonymity. The shaky ceasefire between Israel and Iran is keeping markets on edge, even as Indian officials express confidence in securing supplies, albeit with potential pricing shifts. After US president Donald Trump declared a ceasefire, Israel accused Iran of breaking it, a claim denied by the latter. Also read | Mint Primer: Oil shock looms as Iran threatens to shut Strait of Hormuz. What it means for India Queries sent to the spokespersons of India's petroleum and natural gas ministry, Adnoc, Saudi Aramco, Embassies of UAE and Saudi Arabia in New Delhi, Indian Oil Corp., BPCL, and HPCL on Tuesday early morning remained unanswered. A US Embassy spokesperson in New Delhi directed questions to the Indian government. Strategic importance The plan is of strategic importance to India, given that out of the 5.5 million barrels of crude oil that India consumes daily, about 1.5-2 mbpd crosses the Strait of Hormuz. To be sure, the Strait, through which a fifth of the world's oil cargoes passes, remained open even during the years-long Iran-Iraq war in the 1980s. 'Given that India gets a significant portion of its imported oil through the Strait of Hormuz, getting a Plan B is of utmost importance. It needs to be seen what quantum the pipelines would be able to transport, as the quantum supplied on vessels through the sea route is huge. India will have to look at a host of options." said C. Uday Bhaskar, director, Society for Policy Studies. Given India's dependence on imported crude and the fact that oil comprises about 30% of its total imports (import bill), volatility and elevated prices impact the trade deficit, current deficit and eventually, economic growth. Last week, an Icra report said that for every $10/bbl increase in the average crude oil price in afiscal, net oil imports will rise by $13-14 billion in that year. Read this | US attack on Iranian nuclear sites roils oil market, India braces for possible price surge Kabir Taneja, deputy director, strategic studies at Observer Research Foundation said: "India has good relations with both Saudi Arabia and the UAE, and securing more oil would not be a problem; however, transportation is key. And such talks are of strategic importance given that India is heavily dependent on hydrocarbon imports and needs to ensure energy security. India has handled such situations well in the past and should be able to navigate any supply crunch scenario." Price changes Indian stock markets ended marginally higher on Tuesday after an initial surge. The BSE Sensex closed at 82,055.11 points higher by 158.32 points or 0.19% from its previous close. 'We are sorted on supplies and there might be some displacement in pricing. Supplies can also come through the Suez Canal and Cape of Good Hope. Then, there are the opportunistic cargoes on the high seas. Iran also needs to keep the Strait of Hormuz open as they don't have any other exit for supplying to China, its main and only buyer," one of the two people cited above said. Iran currently produces about 3.3 mbpd of crude oil, and exports 1.8-2.0 mbpd. It is yet to act on its threat of closing the strait, a development that could block a fifth of the world's oil cargoes and send oil prices into a spiral. 'A worst-case scenario would be Iran disrupting shipping lanes along the Strait. However, Iran is heavily dependent on the Strait, and this act could impact neighbouring oil producers and global consumers," J.P. Morgan Asset Management wrote in a 16 June report. Also read | US strike on Iran raises oil shock, capital flow risks for India's economy However, while India is sorted on supplies, there are concerns on pricing. Crude oil surged to nearly $80 per barrel amid the latest Israel-Iran conflict, before easing on Tuesday after the ceasefire news. At the time of writing the story, the August contract of Brent on the Intercontinental Exchange was trading at $68.96 per barrel, lower by 3.55% from its previous close. Similarly, the August contract of West Texas Intermediate on the NYMEX fell 3.37% to $66.20 per barrel. 'Presently, none of India's crude oil supplies comes through Fujairah located on the Gulf of Oman. It's (Habshan-Fujairah) a strategic pipeline that they will open. Our state-run refiners have already spoken to Adnoc," said one of the two government officials cited above, requesting anonymity. New options Experts said discussions to use the pipelines may open up new options for India. Gaurav Moda, partner and leader for energy with EY-Pantheon India said: "Such engagements will open up avenues for strategic and closure partnership of India with major oil suppliers like Saudi Aramco and Adnoc. Both these companies will see India, not just as a buyer of oil but also as a strategic partner." With a growing presence in India's energy security architecture, Adnoc is the only company to commit to India's strategic crude oil reserve programme to date, and supplied oil worth $13.86 billion in FY25 to India. Meanwhile, Saudi Aramco is India's third largest crude oil supplier, and sold oil worth $20 billion in FY25 to India. Saudi Aramco also has plans to collaborate on establishing two oil refineries in India; with Saudi Arabia's plan to invest $100 billion in India in sectors including energy, petrochemicals, infrastructure, technology, and fintech. Also read | Aramco's VC arm in talks for India team 'Saudi Aramco will get it through the Red Sea. Our Russian oil supplies also come through the Red Sea route. Our state-run companies have already spoken to them, and a plan is already in place in case the worst-case scenario of Iran closing the Strait of Hormuz ever plays out," one of the two people cited above said on the condition of anonymity. India imports around 244 million tonne of crude oil annually, accounting for over 85% of its total crude oil imports. These imports are split between long term oil crude oil contracts and spot cargoes in a 60:40 ratio. Global reserves 'Most of these companies including Saudi Aramco have their petroleum reserves all over the world including in Japan, Singapore and South Korea. In the event of the Strait of Hormuz getting closed; the replacement barrels will come from there," the official said, adding talks to access them in emergency have already take place. On Tuesday, India welcomed the ceasefire between Israel and Iran, adding it is ready to play its part in the efforts to bring peace and stability in West Asia. "While we remain deeply concerned about the prospects for overall and sustained regional security and stability, we welcome reports of a ceasefire between Iran and Israel and the role played by the US and Qatar in bringing it about," a statement from the external affairs ministry said. "We wish to reiterate that there is no alternative to dialogue and diplomacy in order to address and resolve the multiple conflicts in the region. India stands ready to play its part in these efforts and hopes that all concerned parties will work towards sustained peace and stability," it added. Also read | Spot freight rates could surge further if Iran shuts Strait of Hormuz India has been working on Plan B for energy security since Israel's attack on Iran on 13 June. India's top crude oil suppliers from the region are Iraq, Saudi Arabia, UAE, Kuwait, Oman and Bahrain, which account for about half of India's total supplies. 'This planning has taken place since Israel's the first set of attacks on Iran. The contingency measures were put in place immediately when Israelis struck Iran," the person cited above said. Eyes on America The rest of the supplies that India needs will come from the US, the official said, as India buys more oil from the US. India imported 3.7 million metric tonnes (mmt) of crude oil from the US in the April-June quarter (as of 24 June), against 2.7 mmt a year earlier. India's total energy imports from the US was 10.5 mmt in 2024-25, with energy security gaining importance in the India-US relations matrix. 'Crude oil imports from the US will reach almost 4 mmt in the first quarter, given that some cargoes are still on the way and the month of June is yet to end. And these volumes will go up," the person added. Analysts say diversifying import sources after the Russia-Ukraine conflict, which at its peak in 2022 led to multi-year high prices of oil, will help India mitigate a crisis situation. India has the option of sourcing crude oil from 39 countries. War premiums Meanwhile, shipping freight spot rates are up 150% since the start of the Israel-Iran war, and war risk premiums are expected to increase further. The daily freight rates of each tanker and vessel from West Asia to Japan and South Korea have increased to $50,000 from $20,000 about 10 days ago. 'The war premium will go up. Generally, insurance used to be 0.01% of the cargo, and technically, doesn't cover force majeure and war. There will be an extra charge and a fee of escorting the vessels through the Red Sea crisis, given the danger of Houthi attacks. The costing can go up," the official added. 'The Israel-Iran conflict poses risks to global energy supply disruptions and has led to a modest jump in oil prices thus far. If the situation escalates, such as blockades around the Strait of Hormuz, the risk premium in oil prices could rise further," the J.P. Morgan Asset Management report said. For now, the sentiments in the market have eased with the announcement of ceasefire. And read | Israel-Iran ceasefire takes the pressure off crude prices, but not Indian OMCs
Mint
22-06-2025
- Mint
The Emirati oil boss banking billions on US energy
Standing in one of Abu Dhabi's ornate palaces last month, the oil boss Sultan Ahmed Al Jaber presented President Trump with a gift: a single drop of oil from the emirate's Murban Bab oil field. 'The highest-quality oil there is on the planet, and they only gave me a drop," Trump joked at the time. 'So I'm not thrilled." If Al Jaber's ambitions are realized, the chief executive officer of Abu Dhabi National Oil Co., Abu Dhabi's state-owned oil company, will soon have far greater offerings for Trump. XRG, the company's international investment arm, plans to deploy billions of dollars in the U.S. It is part of the United Arab Emirates' goal to boost the value of its energy investments there to $440 billion over the next decade—about $50 billion less than Exxon Mobil's market capitalization. It aims to take stakes in U.S. oil and gas fields and chemical and gas export plants as well as power projects to support the development of artificial intelligence. Those aspirations position XRG to become one the largest foreign investors in U.S. energy. During Trump's visit to Abu Dhabi, Al Jaber briefed the president on the plans as the pair stood before a giant screen emblazoned with the phrase 'Making Energy Great Again." Trump, who has aggressively courted foreign investment, was thrilled, said people familiar with the matter. The investment plan puts Al Jaber at the center of the relationship between the U.S. and the U.A.E., one of Washington's closest allies in the region based on their longstanding trade and security ties. Adnoc, once a middling player on the international stage, has emerged as one of the world's most ambitious—and well-funded—energy companies under his stewardship. Al Jaber, who rose from relative obscurity, has deftly navigated his country's palace politics to become a key adviser to the ruling emiratis. In addition to his role as Adnoc CEO and XRG executive chairman, he is the U.A.E. minister of industry and advanced technology. In March, he traveled with Sheikh Tahnoon bin Zayed Al Nahyan, the national-security adviser, to the White House. There, the delegation announced that the U.A.E. would invest $1.4 trillion in the U.S. 'The U.A.E. has become a bridge between East and West, and we have become a global economic center," Al Jaber said in an interview. 'We sit at the crossroads of the world." About a year ago, Adnoc purchased a 11.7% stake in a $18 billion natural-gas export terminal being built by the developer NextDecade at the Port of Brownsville in Texas. In the scorching heat last month, about 3,000 workers milled about a site roughly the size of Central Park, dotted with cranes that set up giant refrigerators to chill natural gas. The plant, which is expected to start producing liquefied natural gas in 2027, will be one of the largest in the world. Such an investment would have been almost unthinkable for Adnoc a decade ago. Al Jaber has trained the company's eye abroad to diversify its assets and make it less dependent on producing oil domestically. He said he is particularly bullish about the U.S., which teems with fossil fuels and low-carbon energy, as well as big tech companies scrambling to find enough power for their AI ambitions. 'Investing in the U.S. will probably be the highest representation on our balance sheet going forward," he said. The U.A.E.'s presence in international energy has long been eclipsed by that of its powerful ally—and sometimes rival—Saudi Arabia. Aramco, Saudi Arabia's national oil company, is a petrochemical powerhouse in dozens of countries. But the U.A.E. has started to catch up. Abu Dhabi-owned companies and funds, including Adnoc and Mubadala Energy, have splurged billions of dollars on stakes in natural-gas projects and energy companies in the U.S., Mozambique, Egypt and Azerbaijan—as well as chemical ventures in Europe. In 2022, a unit of the Abu Dhabi Investment Authority acquired a 10% noncontrolling interest in Sempra Infrastructure, which is developing several LNG projects in the U.S. and Mexico. Mubadala Energy in April agreed to acquire a 24.1% interest in the private-equity firm Kimmeridge's SoTex, which owns companies that drill for shale gas in Texas and are developing an LNG project on the Gulf Coast. Ben Dell, a managing partner of Kimmeridge, said America offers the U.A.E. low-cost energy supplies needed to develop AI capabilities. 'The U.A.E. and the U.S. are becoming natural partners," he said. The U.A.E. has sought to build a dominant AI sector to bolster its postoil economy. During Trump's visit, Emirati officials persuaded his team to greenlight a deal to give their country access to millions of Nvidia's most-advanced chips. Al Jaber views AI as driving the next stage of evolution and said the U.A.E. is making decadeslong bets to align its economy with it. Al Jaber's meteoric rise was perhaps unlikely. He isn't a royal, and his family comes from Umm Al Quwain, one of the smallest of the seven emirates that make up the U.A.E. A chemical engineer by training, he earned scholarships from Adnoc and studied chemical engineering at the University of Southern California, before working his way up the rungs of his country's energy industry. Jaber has said it was his dream to work for Adnoc. Although he has cultivated an image as a hard-charging oil CEO, the 51-year-old father has his quirks. Those who know him say he is obsessed with coconuts and has been known to show guests his coconut-bearing palms and serve coconut water or coconut cake. Among the ruling emiratis, Al Jaber is seen as a technocrat who is unafraid of ruffling feathers. In 2016, U.A.E. President Sheikh Mohammed bin Zayed al Nahyan tapped him to restructure Adnoc. Al Jaber cut staff and courted foreign investment, causing a stir at home. He also boosted Adnoc's oil production. The company's transformation earned him the trust of the president, according to people close to the company. Daniel Yergin, vice chairman of S&P Global and a veteran energy expert, said he first met Al Jaber in 2007, when he was tasked with building a renewable business in Abu Dhabi—a seemingly quixotic venture for the oil-producing emirate. Today, the U.A.E. is one of the world's biggest state financiers of clean energy. 'He makes things happen," Yergin said of Al Jaber. 'The role of XRG is really commensurate with the growing role of the U.A.E. and Abu Dhabi in the global economy." Al Jaber courted controversy as the president of the United Nations' 2023 climate-change conference in Dubai. The selection of the oil boss angered environmentalists. For his part, Al Jaber was incensed over what he said were misrepresentations about his views on climate change. Ultimately, under his leadership, the summit reached a first-of-its-kind deal calling for 'transitioning away from fossil fuels," though it didn't explicitly commit to phasing them out. Trump's unabashed support for oil and gas is refreshing, said Al Jaber. The CEO said his own record demonstrates that he supports investing in green-energy projects, but added that the global AI boom will fail to launch without energy from fossil fuels, in particular natural gas.'Energy realism is taking center stage, and that excites me…because we're no longer working around unrealistic mandates," he said. Write to Christopher M. Matthews at and Benoît Morenne at
