DNV GL reveals five oil and gas trends and why MENA industry professionals are among the most optimistic
The technical advisor's latest report surveyed 800 senior oil and gas professionals globally, and found that MENA has one of the highest confidence levels for its energy outlook. In the latest episode of Spotlight, Richard Bailey, vice president of oil and gas for DNV GL, talks about the key trends the company uncovered in its latest report, which surveyed senior oil and gas professionals across the globe.
Senior oil and gas professionals in the Middle East and North Africa (MENA) are optimistic about the sector’s growth in 2019, according to new research by DNV GL. In its A test of resilience report, it noted that 83% of MENA professionals surveyed expressed confidence in the industry’s growth for the year, compared to 63% last year and to 76% globally now.
The research is based on a global survey of nearly 800 senior and gas professionals, as well as in-depth interviews with industry leaders.
MENA respondents’ optimism concerning overall prospects for their own organizations in 2019 has also risen over the past year, from 78% to 85%, and is second only to China (92%). As confidence grows, 83% in MENA predict their companies will increase or maintain capital expenditure in 2019, the highest such level of confidence among regions in DNV GL’s analysis. Nearly two thirds (62%) in MENA believe their organizations will favour projects that are adaptable within shorter time-frames.
“It is quite a dramatic step up if you look at the data,” says Ben Oudman, regional manager for Continental Europe, the Middle East, East Africa and India at DNV GL – Oil & Gas. “Confidence is back at levels like in 2010, 2011 and 2012, the heady days when oil prices were $120 per barrel. As companies have been successful at driving down costs, they can live with an oil price sitting around the $60 space, and they have made themselves much more robust to deal with fluctuation in oil price.”
More than half (53%) of the region’s senior oil and gas professionals now agree that companies will be able to achieve high profitability in the next decade, well up on the 39% who thought so in 2018. In addition, cost controls remain firmly in place: 89% expect them to increase or stay the same this year, compared to 82% last year.