The MENA region has led the way in the global oil and gas industry for some time now, but has this level of dominance made them complacent? Are they still in a position to compete with the emerging APAC region?
This week leading oil and gas executives from the APAC region met at the NG O&G APAC summit at Sentosa to discuss new technology and innovation, which will allow them to close the gap on the Middle East supply.
Last year saw the biggest pullback in oil demand in history, and the economic downturn saw oil consumption drop by 3 million bpd. 2010 has seen the global market splutter back towards relative normality, offering investment opportunities across the industry, which have been capitalised on by the attendees at the recent NG O&G APAC summit.
Industrialisation and population growth in developing countries drive demand in the oil and gas industry, but a stable economy is a necessity for development, something that is finally beginning to appear on the horizon.
Growth also needs support, a good infrastructure and the harnessing of new and emerging technologies, a debate which will be key at the NG O&G MENA summit in April.
Business and operational leaders face a number of challenges related to diverse and non-integrated technologies and informational systems. Quite often they are overwhelmed by data overload and technology obsolescence issues. Such scenarios can lead to low ROI and missed business opportunities. In addition, emerging technologies and enhanced regulatory and safety compliance are adding to the complexity, at a time of dwindling skilled resource bases.
“Consolidation in the sector is inevitable as larger companies take advantage of strategic opportunities. The positive trends that we have seen in recent months are likely to continue this year and the outlook for oil and gas transactions is healthy in upstream and oilfield services. This is a pattern which emerges globally by the Middle East, Africa and Asia–Pacific,” Summit Director
Economically, more co-operation between the oil and gas sector's ‘big businesses’ would reduce the economic costs for the Asia–Pacific region, thus reducing their reliance on the Middle East.
Author: NG Online News.