Digitalisation is transforming the utilities sector through increased optimisation and sustainability

Abu Dhabi, United Arab Emirates – 19th April 2022: Accelerated by urgent demands for increased connectivity, reduced costs, and improved operational efficiency – there has been a rapid growth and development in digitalisation across the world’s key industrial sectors.

With the impact of the pandemic and the increasing need of pursuing greener and sustainable alternatives, the utilities sector, an underlying facilitator for all industries, has witnessed an emergence in the adoption of digital technology in the sector, and is expected to climb as power demand rises to drive economic development.

Transforming operations and systems with digital technologies can create substantial value for utility companies. Studies indicate potential reduction in operating expenses of up to 25 percent, and performance gains of 20 to 40 percent in areas such as safety, reliability, customer satisfaction and regulatory compliance is also achievable.[1]

These incentives have led utility companies to rapidly adopt digital technologies including the reimagining of customer journeys, adding digital leak detectors to gas grids and water supply, using predictive models to schedule maintenance and other asset-management activities.

Efficient operations and lower costs mean that utility companies can pass on the savings to consumers. This is especially important given the current challenging landscape of high-energy prices that have affected consumers across the world, especially those in Europe and the USA.

It is evident that digital technologies, data, and internet of things (IoT) will play a vital role in the digital transformation of utilities.  These technologies have great potential in helping to optimise the use of energy resources and operations at remote facilities, while ensuring reliable, safe and secure infrastructures.

Emerging digital technologies, such as smart grids, industrial IoT and big data are influencing the power industry to transform into more agile, cost effective, and sustainable business models. For example, there is an increasing use of sensors and metres to detect leaks and reduce consumption through technologies, such as smart-home appliances and smart-street lightings as part of smart-city plans that are being developed and implemented.

As the digitalisation of power distribution and retail companies is expected to continue to accelerate this decade, Frost & Sullivan says that digital investments are directed toward three main areas: enhancing customer service, optimising grid operations, and developing connected businesses. By incorporating cloud computing, big data, analytics, and IoT solutions, utilities and retailers are transforming their businesses beyond commodity selling.

With global energy demand set to double by 2050, major sustainability concerns are pushing an energy efficiency agenda forward, all over the world. The UAE has to meet ambitious targets as part of the UAE Energy Strategy 2050, which includes reducing the carbon footprint of power generation by 70 percent, while also reaching Net Zero by 2050. These developments, coupled with technological disruptions, are expected to be key to accelerating global economies.

Christopher Hudson, President of dmg events, the organisers of the World Utilities Congress said: “Adopting digital technologies will help utility company managers increase the efficiency of their assets, save energy and water, and lead to an overall more sustainable country.”

He added: “Data will also play an integral role in decision-making, both for current projects and future developments, paving the way for a new energy ecosystem.”

The digitalisation of the utilities sector will be delved deeper into at the World Utilities Congress, with a dedicated strategic panel on Digital Transformation and Technological Innovations. The Congress will take place on 9-11 May in Abu Dhabi’s ADNEC, convening more than 10,000 global utilities professionals to explore critical topics, including the future of low carbon power and water supplies.

The World Utilities Congress will be held under the patronage of H.H. Sheikh Khaled bin Mohammed bin Zayed Al Nahyan, member of the Executive Council and Chairman of the Abu Dhabi Executive Office.

Hosted by TAQA, the global exhibition and congress provides an unrivalled platform to explore the latest products, innovations, and technological advancements across the global utilities landscape. It will bring together water and power leaders to provide insights on building resilient low carbon business models with agile automated digital operations.

To learn how to access the event, visit www.worldutilitiescongress.com for more information.

[1] The Digital Utility: New challenges, capabilities, and opportunities, Mckinsey & Company

GPCA Announces Special Edition of Annual Forum to Take Place in February 2021

The forum will address the theme ‘Leadership in the New Reality – Catalyzing Sustainable Growth in the Chemical Industry’

Dubai, United Arab Emirates, 9 December 2020 – The Gulf Petrochemicals and Chemicals Association (GPCA), the voice of the chemical industry in the Arabian Gulf, today announces that a special edition of the 15th Annual GPCA Forum will take place on 10-11 February 2021 at the Madinat Jumeirah, Dubai, addressing the theme ‘Leadership in the New Reality – Catalyzing Sustainable Growth in the Chemical Industry’.

The forum’s agenda will include four main sessions which will be addressed by CEOs of leading chemical companies and key players from the Arabian Gulf region and globally. They will discuss opportunities for the new era beyond COVID-19. The forum is set to attract senior industry executives from over 50 countries.

The COVID-19 pandemic led to plunging petrochemical prices, eroding margins, and depressed demand during the first two quarters of 2020. The regional chemical industry started to bounce back in Q3 but has not recovered fully yet. Despite earnings being negative, the third quarter of this year closed with net income growth for the majority of listed GCC chemical producers, which posted an average net income growth of 78%.

As the chemical industry emerges from the devastating impact of the coronavirus pandemic, leadership in the new reality will become front and center to companies’ journey towards success in 2021 and beyond. The Annual GPCA Forum will provide renewed perspectives from across the world on key issues that remain top of mind for industry leaders today including leveraging technology post crisis, what value creation will look like in a changing landscape, the need to upskill the workforce of the future, build supply chain resilience and drive positive sustainability results.

Over the last decade and a half, the Annual GPCA Forum has established itself as the most anticipated downstream industry event, and promises to deliver a compelling program with an impressive line-up of speakers who will descend from all over the region and the world. Some of the speakers and panelists confirmed so far include:

· Yousef Al-Benyan, CEO, SABIC and Chairman, GPCA
· Ilham Kadri, CEO and Chairman of the Executive Committee, Solvay
· Dr. Markus Steilemann, CEO, Covestro and President, PlasticsEurope
· Dominic Waughray, Managing Director, World Economic Forum
· Ahmed Saleh Al Jahdhami, CEO Downstream, OQ
· Dr. Faisal Al-Faqeer, CEO, Sadara Chemical Company
· Mosaed Al Ohali, CEO, Ma’aden
· Dr. Ahmed Ali Attiga, CEO, APICORP
· Rayan Fayez, MD and CEO, Banque Saudi Fransi

Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA, commented, “The COVID-19 pandemic has presented unimaginable challenges to the chemical industry the world over and redefined the priorities, business strategies and metrics for success for today’s organizations. How can chemical companies safeguard their competitiveness in 2021 and beyond? How can Arabian Gulf producers remain in the driving seat of innovation and global market leadership? What is the recipe for success on sustainability, digitalization, workforce development and value creation for shareholders with long term returns? The Annual GPCA Forum will provide a platform to debate and answer these key questions and more, and share lessons learned from the region and the world as we come together to navigate through the new reality in the post pandemic era and build a more resilient future for our industry, society and planet.”

To register your interest, visit https://gpcaforum.net/register/

ADIPEC, the World’s Largest Gathering of Oil and Gas Industry Players set to Convene Virtually

H.E. Dr. Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, to inaugurate the opening ceremony on Monday, November 9

Ceremony will feature a ministerial panel session and the 10th annual ADIPEC Awards

Over 700 thought leaders and industry experts to participate in 135 online sessions spanning 4 days 

Abu Dhabi, UAE – 3 November, 2020: The Abu Dhabi International Petroleum and Exhibition Conference (ADIPEC) 2020 Virtual Conference, the world’s largest gathering of oil and gas industry players, is set to begin on Monday, November 9, 2020.

Held under the patronage of the United Arab Emirates (UAE) President His Highness Sheikh Khalifa Bin Zayed Al Nahyan, and hosted by the Abu Dhabi National Oil Company (ADNOC), the conference provides a global platform for policymakers, industry leaders and professionals to engage on and address the most pressing issues facing the energy sector.

His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO will inaugurate the opening ceremony which will take place at 14:00 GST (Gulf Standard Time) on Monday 9 November 2020.

Following the inaugural address by H.E. Dr. Al Jaber, a ministerial panel session will be held featuring H.E. Suhail Mohamed Al Mazrouei, UAE Minister of Energy and Infrastructure, His Royal Highness Prince Abdulaziz bin Salman Al-Saud, Minister of Energy, Kingdom of Saudi Arabia, His Excellency Alexander Novak, Minister of Energy, Russian Federation and H.E. Mohammad Sanusi Barkindo, Secretary General, OPEC. The panel will focus on building resilience in the energy industry.

Omar Suwaina Al Suwaidi, Chairman of ADIPEC, said: “Over the past three decades, ADIPEC has evolved to become the world’s pre-eminent gathering of the oil and gas industry, setting the agenda of the global energy conversation and placing Abu Dhabi and the UAE at its center. This year’s virtual edition is no different. ADIPEC 2020 provides a timely opportunity for the industry to discuss practical solutions on how we can strengthen our resilience to enable long-term and sustainable value as we continue responding to the COVID-19 situation and adjust to a fast-evolving energy landscape.”

The Opening Ceremony will conclude with a celebration of the winners of the 10th edition of The ADIPEC Awards. The finalists in each of the 10 categories will join distinguished members of the jury panel and CEO of ADNOC LNG and ADIPEC Awards Chairperson, Fatema Al Nuaimi, in recognising and rewarding the individuals, companies and projects breaking down barriers and driving positive change in the industry.

The theme of this year’s ADIPEC is “Examining the Oil and Gas Industry’s Response to Unparalleled Change” and will see the conference focus on the strategies that will deliver long term success for the industry as it navigates the impact of the COVID-19 pandemic on the global economy, energy market dynamics and the implications COVID-19 has on the energy transition.

ADIPEC 2020 comprises a strategic and technical conference of more than 135 sessions, with over 700 global speakers and 115 technical sessions. The virtual exhibition will host more than 100 exhibiting companies and the global virtual meetings programme will offer attendees the opportunity to make new contacts and reconnect with their professional networks.

The Virtual Strategic Conference will see industry leaders discuss strategies for success as the long-term impact of the crisis is felt on supply and demand, the world economy, and the global energy transition.

The Technical Conference, organised by Society of Petroleum Engineers (SPE), will feature over 800 technical experts from around the world. With over 115 technical sessions the Virtual Technical Conference is the largest in the world to take place this year. Furthermore, the expanded ADIPEC Virtual Downstream Technical Conference, organised by dmg events will explore the role of AI and digitalisation in refining and petrochemicals; decarbonisation; the future workforce; energy security, and the future impact of the downstream on the circular economy.

ADIPEC 2020 Virtual can be accessed on any device that has an internet connection, giving all attendees unlimited access to global exhibitors and industry professionals at their convenience, during the actual event days and on-demand for 30 days post event.

The 2020 edition of ADIPEC boasts a confirmed list of speakers comprising energy leaders, industry experts, government officials, policymakers, thought leaders, academics and technology innovators including:

H.E. Shaikh Mohammed bin Khalifa Al Khalifa, Minister of Oil, Kingdom of Bahrain
H.E. Supattanapong Punmeechaow, Deputy Prime Minister, and Minister of Energy, Thailand
H.E. Tarek El Molla, Minister of Petroleum, and Mineral Resources, Arab Republic of Egypt
H.E. Shri Dharmendra Pradhan, Minister of Petroleum and Natural Gas, Minister of Steel, India
H.E. Kajiyama Hiroshi, Minister of Economy, Trade and Industry, Japan
Rt Hon, Graham Stuart MP, Minister for Exports, United Kingdom
H.E. Hala Adel Zawati, Minister of Energy and Mineral Resources, Jordan
H.E. Ihsan Ismaael, Minister of Energy and Minister of Oil, Republic of Iraq
H.E. Arifin Tasrif, Minister of Energy and Mineral Resources, Republic of Indonesia
H.E. Eng. Khairy Abdelrahman, Acting Minister of Energy and Mining, Sudan
H.E. Chief Timipre Sylva, Minister of State for Petroleum Resources, Nigeria
H.E. Mouhamadou Makhtar Cissé, Minister of Petroleum and Energy, Senegal
H.E. Gabriel Mbaga Obiang Lima, Minister of Mines, Industry and Energy, Equatorial Guinea
H.E. Jean-François Tremblay, Deputy Minister of Natural Resources, Canada
Frank Fannon, Assistant Secretary, Bureau of Energy Resources, US Department of State
Patrick Pouyanné, Chairman and CEO of Total.
Bernard Looney, CEO of BP.
Claudio Descalzi, CEO of Eni.
Takayuki Ueda, President and CEO, INPEX Corporation.
Mario Mehren, CEO, Wintershall DEA.
Philippe Boisseau, EO of Cepsa.
Vicki Hollub, President and CEO of Occidental.
Meg Gentle, President and CEO of Tellurian.
Hajime Wakuda, President of the Japan Oil, Gas and Metals National Corporation.

Leveraging Synergies Created by the Convergence of Operational and Engineering Technologies and Digitalisation, Can Deliver Significant Savings for Energy Companies

Pioneering technology expert tells ADIPEC Energy Dialogue up to 80 per cent of plant shutdowns could be mitigated through combination of advanced electrification, automation and digitalisation technologies

Greater use of renewables in power management processes offers oil and gas companies opportunities to create efficiencies, sustainability and affordability when modernising equipment, or planning new CAPEX projects

Abu Dhabi, UAE – 10 August 2020 – Leveraging the synergies created by the convergence of electrification, automation and digitalisation, can create significant cost savings for oil and gas companies when making both operational and capital investment decisions, according to Dr Peter Terwiesch, President of Industrial Automation at ABB, a Swiss-Swedish multinational company, operating mainly in robotics, power, heavy electrical equipment, and automation technology areas.

Participating in the latest ADIPEC Energy Dialogue, Dr Terwiesch said up to 80 per cent of energy industry plant shutdowns, caused by human error, or rotating machinery or power outages, could be mitigated through a combination of electrification, automation and digitalisation.

“Savings are clearly possible not only on the operation side but also, using the same synergies between dimensions, you can bring down the cost schedule and risk of capital investment, especially in a time when making projects work economically is harder,” explained Dr Terwiesch.

A pioneering technology leader, who works closely with utility, industry, transportation and infrastructure customers, Dr Terwiesch said despite the increasing investment by oil and gas companies in renewables and the growing use of renewables to generate electricity, both for individual and industrial uses, hydrocarbons will continue to have an important role in creating energy, in the short to medium term.

“If you look at the energy density constraints, clearly electricity is gaining share but electricity is not the source of energy; it is a conduit of energy. The energy has to come from somewhere and that can be hydrocarbons, or nuclear, or renewables.” he said.

Nevertheless, he added, the greater use of renewables to generate electricity offers oil and gas companies the option of integrating a higher share of renewables into power management processes to create efficiencies, sustainability and affordability when modernising equipment, or planning new CAPEX projects.

The ADIPEC Energy Dialogue is a series of online thought leadership events created by dmg events, organisers of the annual Abu Dhabi International Exhibition and Conference. Featuring key stakeholders and decision-makers in the oil and gas industry, the dialogues focus on how the industry is evolving and transforming in response to the rapidly changing energy market.

With this year’s in person ADIPEC exhibition and conference postponed to November 2021, the ADIPEC Energy Dialogue, along with insightful webinars, podcasts and on line panels continue to connect the oil and gas industry, with the challenges and opportunities shaping energy markets in the run up to, and following, a planned three-day live stream virtual ADIPEC conference taking place from November 9-11.

An industry first of its kind, the online conference will bring together energy leaders, ministers and global oil and gas CEOs to assess the collective measures the industry needs to put in place to fast-track recovery, post COVID-19.

To watch the full ADIPEC Energy Dialogue series go to: https://www.youtube.com/watch?v=QZzUd32n3_s&t=6s

BP invests US$5 million in a cloud-based geospatial analytics software company that uses advanced spectral imagery and machine learning to monitor environmental changes

BP’s Senior Vice President of digital science and engineering tells latest edition of the ADIPEC Energy Dialogue series oil and gas industry should use technology to reimagine global energy system

Companies urged to look outside industry for innovative new ideas and ways to use digital technologies to take industry forward

Abu Dhabi, UAE – 11 July 2020 – The global oil and gas industry needs to embrace a new business mindset and new digital skills if it is to reap the benefits from deploying advanced digital technologies, such as artificial intelligence, big data and analytics, robotics and quantum computing.

Participating in the latest ADIPEC Energy Dialogue, Morag Watson, BP senior vice president of digital science and engineering, said the oil and gas industry has been slower than other industries to open up to the possibilities of leveraging digital technologies in order to compete and succeed in the energy transition.

“For me it is not just about the technology,” Watson said. “Many of the technologies have been on a reasonably fast trajectory for a while. The industry has to be open to thinking, how can we do things differently?

“It doesn’t just happen by saying here are 10 robots that are going to do your work for you. It just doesn’t work that way. You have to have the right business mindset to make it possible for the technology to radically change how you do things.”

Highlighting the oil and gas industry is still at the beginning of how digital technologies can help it meet the challenges being created by the energy transition, Watson said companies should look outside the industry for innovative ideas on how to use digital technologies to help them stay successful.

Watson cited BP’s US $5 million investment in a Satelytics – a cloud-based geospatial analytics software company that uses advanced spectral imagery and machine learning to monitor environmental changes, including methane emissions – as an example of how BP is making strategic investments in innovative, game-changing technologies and businesses that can help it reimagine the global energy system.

“At BP we see our venture capital program and the companies we help as a source of innovation and a crucial part of our strategy going forward,” Watson said. “These people see things differently, things that we might not have seen for ourselves. We don’t have all the answers and we want to engage with the external eco-system because we know the great ideas and solutions will come from many, many different places, helping us to innovate through our many challenges as we move forward.”

Addressing the need to bring in new digital native talent into the oil and gas industry, Watson said it needs to do more to convince young people it offers exciting, fulfilling careers in an industry that is seeking answers to the greatest challenges facing the world, including climate change.

“The industry needs to embrace the diversity of talent that is available across the world and to inspire and attract people through a different lens by connecting them to the technology, or how we use it. A good example would be our investment in Beyond Limits, and saying how can we take technology that is used on Mars and apply that in the energy industry? That is a hugely inspiring story,” Watson said.

The ADIPEC Energy Dialogue is a series of weekly online thought leadership events created by dmg events, organisers of the annual Abu Dhabi International Petroleum Exhibition and Conference. Featuring key stakeholders and decision-makers in the oil and gas industry, the dialogues focus on how the industry is evolving and transforming in response to the rapidly changing energy market.

ADIPEC attracts more than 155,000 energy professionals from 67 countries; including senior decision-makers and energy industry thought leaders, over 2,200 exhibiting companies and 23 national exhibiting pavilions as oil and gas companies convene to share views and best practices to address the long-term impact of the triple challenge of lower oil prices, weaker demand and over supply.

Held under the patronage of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE; hosted by the Abu Dhabi National Oil Company (ADNOC); and supported by the UAE Ministry of Energy & Industry, the Abu Dhabi Chamber, and the Abu Dhabi Tourism and Culture Authority, ADIPEC takes place at the Abu Dhabi National Exhibition Centre (ADNEC), Abu Dhabi, UAE.

To watch the full Energy Dialogue series go to: https://www.youtube.com/watch?v=FRfj495moBU

About ADIPEC
Held under the patronage of the President of the United Arab Emirates, His Highness Sheikh Khalifa Bin Zayed Al Nahyan, and organised by the Global Energy division of dmg events, ADIPEC is the global meeting point for oil and gas professionals. Standing as one of the world’s top energy events, and the largest in the Middle East and North Africa, ADIPEC is a knowledge-sharing platform that enables industry experts to exchange ideas and information that shape the future of the energy sector. The 36th edition of ADIPEC will be hosted by the Abu Dhabi National Oil Company (ADNOC) and supported by the UAE Ministry of Energy & Industry, Masdar, the Abu Dhabi Chamber, the Abu Dhabi Department of Culture and Tourism, Abu Dhabi Ports and the Department of Education and Knowledge. dmg events is committed to helping the growing international energy community.

Oil and gas industry can implement new ways of working with its suppliers to mitigate financial distress

Building long-term procurement and supply chain resilience, the worst effects of the crisis could be avoided.

ADIPEC Webinar told oil and gas operators need to work more closely with suppliers to mitigate financial impact of oil price collapse, stabilise supply chains and build long-term resilience

Abu Dhabi, UAE – 21 June 2020 – The triple shock of COVID-19 and the subsequent collapse of energy demand and oil prices have put the future of the oil and gas industry’s oil field equipment supply sector under threat, as operators impose activity and price cuts and renegotiate contracts to reduce costs.

Warning today’s industry crisis is significantly more severe than 2014, when oil prices fell by 40 percent, Alexey Dolya, Managing Director and Partner, at Boston Consulting Group, said more than half of oil field equipment suppliers are at risk of bankruptcy if oil prices remain at $30 per barrel until the end of the year.

Participating in an online ADIPEC Webinar, entitled Building Future Business Resilience through Technology, Innovation and Partnerships, Dolya said if the oil and gas industry can implement new ways of working with its suppliers to mitigate financial distress, while building long-term procurement and supply chain resilience, the worst effects of the crisis could be avoided.

In the short-term, he said, operators need to have forward-looking transparency into vendor financial health to mitigate supplier distress. In the medium term, operators and suppliers need to consider new technologies and strategic partnerships to unlock 20-50 percent lower costs to survive in a $30 per barrel oil market.

“The current crisis is very different to what we have seen before,” Dolya said. “Supplier prices have not yet recovered from the last crisis and many vendors’ health is much weaker. However, the response of oil and gas operators has been similar to 2014, with activity cuts and requests for price cuts putting suppliers at risk of bankruptcy.

“Instead, operators should look to the automotive and defence industries, where there is close collaboration with suppliers and both sides learn from each other. Operators need to build forward looking models to try to understand how long supplies can last in the current environment and work with suppliers to unlock significant potential from alliances and strategic partnerships.”

A BCG survey, conducted in May, shows the biggest impact on the oil field equipment suppliers industry is being felt in the well services, drilling and rigs and topside and process equipment categories. Other areas under pressure include seismic; subsea; logistics; engineering, procurement, construction and installation and maintenance and professional services.

According to BCG, unilateral measures to mitigate financial pressures on suppliers could include extending preferential rates; front loading ordering of products; improved access to finance, including direct lending to suppliers, direct payment of Tier 2 suppliers, bank guarantees and measures to safeguard against default, including an option to purchase, sell-off or recover input materials. Meanwhile, cross-operator levers could include government support packages for the oil field equipment supply industry, including tax exemptions; structural guarantees for key industries; greater clarity on the demand pipeline and coordinated cross operator bail-out efforts.

The ADIPEC Webinar series is a weekly online thought leadership event created by dmg events, organisers of the annual Abu Dhabi International Exhibition and Conference. Featuring key stakeholders and decision-makers in the oil and gas industry, the dialogues focus on how the industry is evolving and transforming in response to the COVID-19 pandemic and the rapidly changing energy market.

ADIPEC attracts more than 155,000 energy professionals from 67 countries; including senior decision-makers and energy industry thought leaders, over 2,200 exhibiting companies and 23 national exhibiting pavilions as oil and gas companies convene to share views and best practices to address the long-term impact of the triple challenge of lower oil prices, weaker demand and over supply.

To watch the ADIPEC webinar in collaboration with BCG go to: www.adipec.com/webinars

About ADIPEC
Held under the patronage of the President of the United Arab Emirates, His Highness Sheikh Khalifa Bin Zayed Al Nahyan, and organised by the Global Energy division of dmg events, ADIPEC is the global meeting point for oil and gas professionals. Standing as one of the world’s top energy events, and the largest in the Middle East and North Africa, ADIPEC is a knowledge-sharing platform that enables industry experts to exchange ideas and information that shape the future of the energy sector. The 36th edition of ADIPEC will be hosted by the Abu Dhabi National Oil Company (ADNOC) and supported by the UAE Ministry of Energy & Industry, Masdar, the Abu Dhabi Chamber, the Abu Dhabi Department of Culture and Tourism, Abu Dhabi Ports and the Department of Education and Knowledge. dmg events is committed to helping the growing international energy community.

About Boston Consulting Group
Boston Consulting Group (BCG) is a global management consulting firm and the world’s leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with offices in more than 90 cities in 50 countries. For more information, please visit https://www.bcg.com

Manufacturing Holds Key to Recovery of Oil and Gas Markets, revealed at this week’s ADIPEC Energy Dialogue

Bounce back in China’s manufacturing sector points the way; other countries expected to follow as lockdown is lifted

Latest in series of on-line ADIPEC Energy Dialogues hears it could be late 2021 before oil and gas markets recover to 2019 volumes

OPEC+ supply constraints coming under pressure from US shale and indebted oil producers as prices strengthen; production cuts likely to be rolled over and extended

Abu Dhabi, UAE – 10 June, 2020 – A revival in manufacturing across the world holds the key to the mid-term recovery of oil and gas markets, with consumer demand likely to lag as the energy industry begins to recover from the twin shock of the COVID-19 crisis and the resulting demand crash.

Participating in the latest online ADIPEC Energy Dialogue, Rachel Ziemba, an economic and political risk expert and Founder of Ziemba Insights, said the early signs from China, the first major economy to exit from the COVID-19 induced lockdown, are that manufacturing has bounced back more than consumption and that trend could be repeated in other countries.

“It is notable that the COVID crisis and the associated economic and energy crisis has really been the first to blow out the global consumer,” Ziemba said. “2008 was much more of a hit to the financial sector and manufacturing. This time it is the reverse. The big question is how quickly consumer demand will come back.”

Ziemba added it could be well into 2021 before oil and gas markets get to volumes approaching where the industry was at the end of 2019.

Looking at the trends likely to impact the recovery of oil markets in the mid-term, Ziemba said the OPEC Plus group of producers has had some success in tightening the market. But a question mark hangs over how long supply can be constrained.

“The challenge is that a few countries, those that are most economically strapped and not eligible for debt relief, are not complying in full and some have barely reduced production,” Ziemba said. “Despite pressure from the likes of Saudi Arabia and Russia, it is going to be very difficult for them to comply because these are countries that had big fiscal deficits when oil was $70 a barrel.

“The other challenge is that we are starting to see parts of the US shale industry starting to reverse shut ins. We are also seeing more rig activity after many weeks of decline. In a price range of mid-30s into a 40 range, there will be more entities that can make some money and the risk is that it puts even more pressure on OPEC Plus. So, I do think the most likely scenario is a rolling over and extension of the supply cuts.”

Access to credit, to support economic recovery, is an additional challenge for indebted oil producing countries, which are having to deal with multiple shocks at the same time, including sizable outbreaks of the COVID-19 coronavirus that may or may not be under control. Many of the oil producers that are in a tougher financial position than their rich peers are too wealthy to qualify for debt relief, Ziemba said, heightening social, political and economic risks which could further impact the oil and gas industry.

Elsewhere, as oil and gas companies seek for ways to recover, Ziemba said she expects to see some industry consolidation, particularly in the United States with more cash rich entities looking to go into smaller, more speculative areas that are lower cost. She also highlighted the possibility of further job cuts as companies become leaner and decide between boosting commercial reserves, or partnering with governments. Meanwhile, she added she expects to see more National Oil Company enter into partnerships, for example Middle East producers and Asian buyers, which enable greater creativity in payment terms and contracts.

The ADIPEC Energy Dialogue is a series of weekly online thought leadership events created by dmg events, organisers of the annual Abu Dhabi International Exhibition and Conference. Featuring key stakeholders and decision-makers in the oil and gas industry, the dialogues focus on how the industry is evolving and transforming in response to the rapidly changing energy market.

ADIPEC 2020 is projected to attract more than 155,000 energy professionals from 67 countries; including senior decision-makers and energy industry thought leaders, over 2,200 exhibiting companies and 23 national exhibiting pavilions as oil and gas companies convene to share views and best practices to address the long-term impact of the triple challenge of lower oil prices, weaker demand and over supply.

Held under the patronage of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE; hosted by the Abu Dhabi National Oil Company (ADNOC); and supported by the UAE Ministry of Energy & Industry, the Abu Dhabi Chamber, and the Abu Dhabi Tourism and Culture Authority, ADIPEC is scheduled to take place from November 9 to 11, at the Abu Dhabi National Exhibition Centre (ADNEC).

To watch the Energy Dialogue series go to: https://www.youtube.com/channel/UCnFtPtFwMrRkuGUTk4Rh4tA

About ADIPEC

Held under the patronage of the President of the United Arab Emirates, His Highness Sheikh Khalifa Bin Zayed Al Nahyan, and organised by the Global Energy division of dmg events, ADIPEC is the global meeting point for oil and gas professionals. Standing as one of the world’s top energy events, and the largest in the Middle East and North Africa, ADIPEC is a knowledge-sharing platform that enables industry experts to exchange ideas and information that shape the future of the energy sector. The 36th edition of ADIPEC will be hosted by the Abu Dhabi National Oil Company (ADNOC) and supported by the UAE Ministry of Energy & Industry, Masdar, the Abu Dhabi Chamber, the Abu Dhabi Department of Culture and Tourism, Abu Dhabi Ports and the Department of Education and Knowledge. dmg events is committed to helping the growing international energy community. To know more, visit: www.adipec.com.

One Month To Go For The World Hse Week 2019!

The team at Verve Management is gleaming with excitement with only one month to go for the much-awaited World HSE Week scheduled for the 7th to 11th April 2019 at the Roda Al Murooj, Dubai, UAE.

The World HSE Week comprises of a 3-Day Masterclass that will have key focus on discovering the real HSE challenges that is faced by the executive management team and their sub-ordinate managers and staffs operating high hazard facilities in the upstream, mid-stream and downstream oil, gas, petrochemicals and elated business segments.

Supported by the Clean Energy Business Council, the 2-Day Conference is set to be another industry-leading event with a line-up of speakers that includes: Hari Kumar (ENOC), Bruce Basaraba (Dana Gas), Deborah L. Grubbe (Operations and Safety Solutions), Ephraim Ebodaghe (Dragon Oil), Mohamed Al Maazmi (Expo 2020), Mohammed Al Jawi (Emirates Global Alluminium), Saleh Ali Albalushi (TECOM Group Dubai), Dr. Waddah Hashem Ghanem (ENOC), Wael Mohamed Amin (Kuwait Energy Egypt), Ephraim Ebodaghe (Dragon Oil) and many more!

Says Sabah Parvez, (MD, Verve Management) “We are very happy with the feedback and support we have received from the industry as we take this step forward to initiate this special World HSE Week. We are grateful to all our speakers and industry leaders who take HSE as one of their core cultures and have given utmost importance to HSE & well-being of their peers. We look forward to welcoming everyone at the event.”

Verve Management would like to invite everyone involved in HSE to be part of this special initiative.

Verve Management is UAE’s business facilitating platform that connects people, partners and ideas. Verve Management delivers remarkable events and provide solutions through Congresses & Summits, Trainings & Workshops, Exhibitions, Association Management, Industry Meetings and Managed Events in Asia, Middle East and Africa. For more information on Verve Management, kindly visit – http://www.verve-management.com/

Ethylene Middle East Technology Conference (EMET) Middle East Fine and Specialty Chemicals, (ME-SPEC), Chem- World Exhibition Middle East (ME-CWE)

Shaping the Future of Middle East Chemical Industry
Three Events. One Venue. Over 3,500 Participant

Dubai UAE, 20th July 2018: The three most acclaimed events in the chemical industry are set to take place in Bahrain this year. These events will play an integral role in shaping the future of the Chemical Industry in the Middle East.
Under the patronage of His Excellency Shaikh Mohamed bin Khalifa Al Khalifa, Minister of Oil, Kingdom of Bahrain and supported by National Oil and Gas Authority (NOGA), the Ethylene Middle East Technology Conference & Exhibition (EMET) alongside the Middle East Fine and Specialty Chemicals Exhibition and Conference (ME-SPEC) and the Chem-World Exhibition Middle East (ME-CWE) will be held on 11th and 12th December 2018 at the Bahrain International Exhibition & Convention Centre in Manama. Together, the events anticipate reaching over 3,500 participants and over 200 exhibiting companies over the span of two days.
Under the chairmanship of Metab Al Shammari, General Manager-Petrochemicals, SABIC, these events will bring together technical experts from all over the world to share practical experiences, innovative ideas and strategies for reducing costs, maximizing return and creating value on issues related to planning, design, operation and maintenance. Attendees include C-level executives, project engineering managers, unit managers, chemical engineers and other prominent executives from the energy, chemical, retail and construction industry.
Current industry supporters of the event include: TechnipFMC, BD Energy Systems, CRI Catalyst, Ingenero, Intecha, Kubota, Pall Corporation and Schmidt + Clemens Group, Keit Spectometers, Kinetic Process Improvements, Chevron Philips, Nalco, MCO Saudi Arabia, Doncasters Paralloy.
Currently in its 3rd edition, EMET is the event for professionals looking to develop their technical knowledge and optimize their position in the fast-evolving ethylene industry by increased operational efficiency, sustainability and excellence.
The 2nd edition of ME-SPEC provides a regional forum for petrochemical suppliers, converters, Original Equipment Manufacturers (OEMs) and potential investors to showcase their products and services, network, and share knowledge & experience across the entire value chain.
With the assistance of the international network of China National Chemical Information Centre (CNCIC), Chem-World Exhibition (CWE) has become the most influential event in the chemicals and chemical processing industry, having extensive visibility and influence in Middle East. ME-CWE aims to support
and encourage enterprises to gain an in-depth understanding of chemical trends and requirements to expand business opportunities between China and the Middle East. This platform will provide face to face networking opportunities for chemical CEOs, managers, engineers, technocrats and scientists, policy makers, planners, and the world’s largest chemical companies.
Combined, these three events make for an unmissable, world class networking event for delegates, visitors and investors.
For further information, please contact Karan Kukreja via phone at +971 4427 0739 or email at [email protected]. For more information visit www.ethylene-me.com (EMET), and www.me-spec.org (ME-SPEC). The three most acclaimed events in the chemical industry are set to take place in Bahrain this year. These events will play an integral role in shaping the future of the Chemical Industry in the Middle East.
Under the patronage of His Excellency Shaikh Mohamed bin Khalifa Al Khalifa, Minister of Oil, Kingdom of Bahrain and supported by National Oil and Gas Authority (NOGA), the Ethylene Middle East Technology Conference & Exhibition (EMET) alongside the Middle East Fine and Specialty Chemicals Exhibition and Conference (ME-SPEC) and the Chem-World Exhibition Middle East (ME-CWE) will be held on 11th and 12th December 2018 at the Bahrain International Exhibition & Convention Centre in Manama. Together, the events anticipate reaching over 3,500 participants and over 200 exhibiting companies over the span of two days.
Under the chairmanship of Metab Al Shammari, General Manager-Petrochemicals, SABIC, these events will bring together technical experts from all over the world to share practical experiences, innovative ideas and strategies for reducing costs, maximizing return and creating value on issues related to planning, design, operation and maintenance. Attendees include C-level executives, project engineering managers, unit managers, chemical engineers and other prominent executives from the energy, chemical, retail and construction industry.
Current industry supporters of the event include: TechnipFMC, BD Energy Systems, CRI Catalyst, Ingenero, Intecha, Kubota, Pall Corporation and Schmidt + Clemens Group, Keit Spectometers, Kinetic Process Improvements, Chevron Philips, Nalco, MCO Saudi Arabia, Doncasters Paralloy.
Currently in its 3rd edition, EMET is the event for professionals looking to develop their technical knowledge and optimize their position in the fast-evolving ethylene industry by increased operational efficiency, sustainability and excellence.
The 2nd edition of ME-SPEC provides a regional forum for petrochemical suppliers, converters, Original Equipment Manufacturers (OEMs) and potential investors to showcase their products and services, network, and share knowledge & experience across the entire value chain.
With the assistance of the international network of China National Chemical Information Centre (CNCIC), Chem-World Exhibition (CWE) has become the most influential event in the chemicals and chemical processing industry, having extensive visibility and influence in Middle East. ME-CWE aims to support
and encourage enterprises to gain an in-depth understanding of chemical trends and requirements to expand business opportunities between China and the Middle East. This platform will provide face to face networking opportunities for chemical CEOs, managers, engineers, technocrats and scientists, policy makers, planners, and the world’s largest chemical companies.
Combined, these three events make for an unmissable, world class networking event for delegates, visitors and investors.

For further information, please contact Karan Kukreja via phone at +971 4427 0739 or email at [email protected]. For more information visit www.ethylene-me.com (EMET), and www.me-spec.org (ME-SPEC).

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