The strategic response of Gulf Cooperation Council (GCC) states to recent challenges faced by oil industry that have impacted prices through global oversupply and constrained economic growth in several key markets, is expected to be a main topic of discussion when industry leaders from the region meet in November at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC).
“The petroleum industry in the GCC states carries a significant responsibility for national development, and we need to be as efficient as possible, as innovative as possible, and maximize the utility we derive from our natural resources,” said Badria Ali Abdul Raheem, Deputy CEO (North Kuwait) at KOC who is responsible for the conventional and heavy oil fields of the North Kuwait asset. She went on to add, “ADIPEC is an important forum for us to achieve this, both as a discussion of industry issues and best practice, and through displays of new methods and technology.”
With the OPEC World Energy Trends Report 2015, forecasting that oil will remain the most significant energy source in the years ahead, despite current challenges, resilience has emerged as a critical issue for decision makers, and investors, in the petroleum industry.
GCC suppliers in particular can expect to benefit as the balance between supply and demand in the oil market stabilizes, and production of high-cost petroleum resources, such as shale oil, become more subdued.
“The current market is challenging, but the forces driving the oil and energy markets are positive for Kuwait and other Gulf producers,” said Ms. Abdul Raheem. “There is now a clear recognition that suppliers with a large resource base of easily accessible crude oil are the most reliable. Kuwait is one of those suppliers, with a long tradition as a reliable supplier in global markets, and with the plans in place to hold that role for a long-term timeframe,” she added.