In The Spotlight
Aarti Dange, customer experience leader, Middle East and Africa and MEA DE&I leader, at Emerson. (Image source: Emerson)
On the occasion of International Women in Engineering Day on 23 June, Aarti Dange, customer experience leader, Middle East and Africa and MEA DE&I leader, Emerson, shared her experiences and insights on providing a supportive environment for women in engineering
Can you give us some background about your role, and how you came to get where you are today?
My role at Emerson is multifaceted, allowing me to leverage my engineering background and my passion for innovation. As the customer experience director and diversity, equity, and inclusion (DE&I) leader for Middle East and Africa, I support marketing and business development functions as well as product development for new digital solutions. I strongly believe in the power of diversity, equity and inclusion in the workplace, and therefore I constantly strive to create a working environment where everybody feels valued and empowered.
My journey to this point began with my keen interest in the energy sector. It is a constantly evolving field, driven by innovation, creative ideas, and various challenges such as sourcing new energy resources from increasingly intricate places like deep underground or under the ocean. This calls for the employment of cutting-edge technologies, such as Artificial Intelligence and Machine Learning. It is fascinating and inspiring to see how these advanced technologies constantly improve and drive positive change, whether in finding new energy sources or making processes safer. Nevertheless, there exists several challenges in the industry, such as the cyclic nature of the industry and its impact on the environment. These challenges, however, open doors to innumerable opportunities for innovation and sustainable energy solutions.
What are the main challenges you have experienced as a woman engineer so far in your career, and how have you overcome them?
As we know, the engineering industry has traditionally been a male-dominated field, which can create a culture that may not be inclusive or supportive of women. Additionally, specific roles in the industry, particularly those involving work on rigs or in remote locations, may set forth physical demands that can be challenging for women. In order to overcome these challenges, I focused on honing and expanding my technical skills and expertise as well as staying current on the most recent technologies. This commitment earned me acceptance and respect from my male counterparts at the company.
I also strived to demonstrate diligence and confidence in my work in order to challenge existing biases, pursued opportunities for professional development and endeavoured to build a robust network within the industry. Industry events, conferences, and workshops not only broadened my skillset and knowledge but also enabled me to connect with other fellow women engineers..
Overall, my journey as a woman engineer, despite all the hurdles in the historically male-dominated industry, has been challenging and rewarding at the same time. Through perseverance, seeking mentorship, advocating for myself, and committing to positive change, I have been able to achieve success.
What do you think have been your main achievements, and what are your aspirations and ambitions for the future?
One of the major achievements that stands out as a pivotal milestone in my career is being selected for the SPE (Society of Petroleum Engineers) Distinguished Lecture Program. Being selected for this program recognises my expertise and contributions to the field and empowers me to make a meaningful impact beyond my immediate sphere of influence, enabling me to serve as a technology ambassador for the oil and gas industry globally. Representing the industry and having the opportunity to inspire and educate individuals about the developments and challenges in the oil and gas industry is a humbling yet thrilling experience. It reaffirms my dedication to remain at the forefront of technological advancements and exchange insightful knowledge with the global community. I consider this achievement as a tremendous honour and responsibility that I deeply cherish.
What do you think companies could do to create a more inclusive and supportive environment for women in engineering, and help them advance in the industry?
Companies can offer training for their employees, particularly those engaged in hiring and promotion procedures, to identify and address unconscious bias. This can guarantee that women are evaluated fairly according to their qualifications and skillset. Furthermore, companies can host diversity events, honour accomplishments of female engineers, and foster an inclusive workplace where all employees are treated equally and fairly, and feel valued.
Mentorship and sponsorship programmes can be established, which can help women engineers to overcome challenges in the field by allowing them to interact with seasoned professionals and mentors who can offer guidance, support, and opportunities for professional growth. Providing women engineers with specialised training programmes, conferences, workshops, and other professional development opportunities can help them grow their skills and networks, in addition to advancing their career in this industry.
One initiative that has received significant recognition is the ‘Women in Engineering (WIE)’ program by the Society of Women Engineers (SWE) which offers networking events, professional development workshops, mentorship opportunities, and advocacy for gender diversity in the field of engineering.
How do you think young girls and women can be encouraged to pursue careers in engineering?
Gender stereotypes in around science, technology, engineering and mathematics (STEM) careers must be dispelled, and this starts with early childhood education and interventions for boys and girls. Encouraging young girls and women to pursue engineering career needs an interdisciplinary strategy that includes diversity initiatives, supportive environments, and exposure.
One successful method is to introduce girls to this field at a young age through various means, such as STEM education programs through schools and organisations. For example, the ‘Girls Who Code’ organisation seeks to bridge the gender gap in technology by providing young girls from diverse backgrounds with coding education. Academic institutions can provide STEM education focusing on female students. These programs can include engineering-related workshops, mentorship opportunities, and hands-on activities. Showcasing success stories of accomplished female engineers will encourage young girls to consider this field as a feasible career option. Likewise, parents have a great influence in shaping children’s career aspirations and professional goals. They can support the interest of their daughters in STEM subjects and offer resources for them to learn more about engineering.
Creating supportive environments through mentorship, networking opportunities, and offering a safe space to address bias and stereotypes is crucial for retaining women in the field of engineering. All these strategies contribute to empowering and encouraging women to pursue careers in engineering as well as help them succeed in the industry.
What future do you see for women in science, technology, engineering and maths (STEM), and the opportunities on offer in these sectors?
I see a promising future for women in STEM. Over the past few decades, women have made great strides in the STEM professions, and this trend is only anticipated to increase. STEM sectors offer diverse opportunities to individuals with varying backgrounds and interests. These industries have a growing need for qualified workers and provide excellent career prospects, competitive pay, and opportunities for advancement.
Ola Balbaa, wells engineer, bp and young professional member of the POWERful Women board. (Image source: POWERful Women)
In advance of International Women in Engineering Day on 23 June, Oil Review Middle East spoke to Ola Balbaa, wells engineer with bp and young professional member of the POWERful Women board, who shared her experiences and thoughts on advancing women in engineering roles
Can you give us a bit of background about your role, and how you came to get where you are today?
I studied Petrochemicals Engineering in Egypt, at Alexandria University, followed by an M.Sc. degree in renewable energy, doing a joint research scope between Alexandria and Kyoto University in Japan.
I then joined bp as a wells engineer in 2016, working offshore, and have been working in this role in the energy field for seven years now. During my career span, I worked offshore on deepwater harsh environment facilities for almost three years, then moved to an office-based role as a planning and execution wells engineer.
I have been able to obtain my leadership trust, steadily build a comprehensive knowledge in the field and reach out beyond that to expand my perspectives through different initiatives and volunteering opportunities. Currently I am part of the central wells discipline team looking after drilling operations in the North Sea region of the UK.
What are the main challenges you have experienced as a women engineer so far in your career, and how have you overcome them?
Working on offshore rigs is a harsh environment for both men and women; most challenges were around cultural acceptance of me as the only female engineer on a drilling rig of 160 men.
In this male-dominated and extreme work environment, my biggest challenge was to get the team’s trust to first learn and gain the knowledge I needed, then lead the team towards safe and efficient energy delivery.
My biggest success moment was when the old-school driller who refused to greet me every morning for six months of work on an onshore rig eventually came and shook my hand and said “I want my daughter to be like you”.
What do you think have been your main achievements, and what are your aspirations and ambitions for the future?
During my master’s degree studies I received the State's Encouragement Award in Science from Egypt’s Ministry of Trade and Industry, for my start-up project Wara2a (Paper), which was to produce paper ecologically without harming the trees or the environment. In 2018 I was nominated among the Top 50 Women in Egypt, an award given to influential female figures. I received the award from Dr.Hala El Said, Minister of Planning and Economic Development. I have lectured and spoken at several energy conferences, such as ADIPEC, IADC and SPE, as well as diversity platforms in Egypt and the UK. I currently lead the Women in Wells group in bp and recently joined the board of POWERful Women as a Young Professional member. I was recently invited by the CBC media channel to speak about women working in harsh fields.
What do you think companies could do to create a more inclusive and supportive environment for women in engineering, and help them advance in the industry?
POWERful Women recently released its Annual State of Nation report which reflects how the top UK energy companies are performing on gender diversity. Women are now in 34% of leadership and 32% of middle management roles in the UK energy sector and some companies are excelling and leading by example.
However, progress on women on boards – and particularly the key decision-making roles like CEO – has stalled. I believe that the most important steps come beyond the analysis, stats and numbers. As well as setting bold targets, companies need to understand and dive deeply into the gaps that women face in their day-to-day jobs, address them thoroughly and keep a safe follow-up communications channel to track progress through enablers like male allies and surveys.
How do you think young girls and women can be encouraged to pursue careers in engineering?
Through research and persistence, anyone can do anything! Don’t quit early, fail early. In other words, if it’s really what you want, do it and pursue it, don’t give up and don’t get discouraged because of stereotypes. And if you fail fast, you follow a progressive route where you learn faster and keep the momentum to develop.
What future do you see for women in science, technology, engineering and maths (STEM), and the opportunities on offer in these sectors?
The energy trilemma is a huge challenge and opportunity at the same time. The transition to net zero and a reliable and affordable energy system is going to require skills, innovation and leadership from people from all kinds of backgrounds. Research shows that greater diversity adds huge value to business performance when done in the right way.
As the sector transforms, there are huge and exciting opportunities for women with STEM skills of all kinds, whether they are just starting out or can bring them over from other industries where they’ve worked – it’s a fast-moving and thrilling time, and women pursuing STEM careers will continue to carry huge value to the energy industry.
KBR will support the delivery of megaprojects in Iraq.
KBR has been awarded a US$46mn five-year contract to support the Iraqi government's infrastructure and future energy ambitions
Under the terms of the contract, KBR, which already plays a significant role in the development of Iraq’s energy sector, will provide advisory and consultancy capabilities to the Iraqi Government's Ministry of Planning, with a focus on creating an effective program environment to support successful delivery of strategic megaprojects. This will include economic planning, strategy development, feasibility studies, technical reviews and large-scale project management.
KBR's focus on innovation and sustainability will be integral to delivering the ambitious development plans, aligning with Iraq's long-term vision for growth and environmental stewardship.
Jay Ibrahim, president of KBR Sustainable Technology Solutions, said, "This is a great example of KBR utilising its growing global capabilities to support regeneration and sustainable growth of a nation. We are proud to further our partnerships in country, where we are already helping make our customers' ambitious plans a reality. With our deep expertise in engineering and energy solutions, KBR is well positioned to help our valued customers meet their energy security and sustainability objectives."
To support the project, KBR plans to expand its presence in country through the creation of an operational office in Baghdad and potentially an engineering design centre to enhance the skills of Iraqi engineers.
The joint venture aims to accelerate carbon capture for industrial decarbonisation at scale. (Image source: Adobe Stock)
SLB and Aker Carbon Capture have announced the closing of their joint venture designed to accelerate carbon capture adoption
The new company will combine ACC’s amine-based Advanced Carbon Capture technologies, including Just Catch and Big Catch modular plant technologies for medium- and large-scale facilities, and Just Catch Offshore for offshore gas turbines, with SLB’s portfolio of technology solutions, including non-aqueous solvent and emerging sorbent-based offerings. The company, of which SLB owns 80% with ACC ASA owning the remaining 20%, currently has seven technology installations in progress with the capacity to capture up to 1 million tonnes of CO2 emissions per year.
“There is no credible pathway toward net zero without deploying carbon capture and sequestration (CCS) at scale,” said Gavin Rennick, president of SLB’s New Energy business. “In the next few decades, many industries that are crucial to our modern world must rapidly adopt CCS to decarbonise. Through the joint venture, we are excited to accelerate disruptive carbon capture technologies globally.”
“There is no business as usual in the push toward net zero – we will accelerate decarbonisation today and commercialise innovative technologies for the future,” said Egil Fagerland, newly appointed chief executive officer of the new joint venture.
“We are proud of the carbon capture plants we are delivering across various industries, with each customer being an important front-runner in its segment. Successful project deliveries are paving the way for other emitters to follow.”
ADNOC is building its international LNG portfolio. (Image source: Adobe Stock)
A joint venture led by Technip Energies with JGC and NMDC Energy has been awarded a major contract worth around US$5.5bn by ADNOC for the engineering, procurement and construction (EPC) of the Ruwais LNG project
The project will consist of two natural gas liquefaction trains with a total LNG production capacity of 9.6 Mtpa), more than doubling ADNOC’s LNG production capacity to around 15 MMtpa,as the company builds its international LNG portfolio.
The plant will use electric-driven motors instead of conventional gas turbines and will be powered by clean energy. It is set to be the first LNG export facility in the Middle East and North Africa (MENA) region to run on clean power, making it one of the lowest-carbon intensity LNG plants in the world.
Arnaud Pieton, CEO of Technip Energies, commented, “We are honoured to have been awarded by ADNOC the Ruwais LNG project, a pioneering initiative in the LNG sector. By powering electrified LNG trains with nuclear energy, this project sets a new standard for energy security and sustainability. By leveraging our low-carbon and electrified LNG leadership we will support ADNOC’s position as a reliable global natural gas supplier and commitment to decarbonisation.”
His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and chairman of the Abu Dhabi Executive Council, endorsed the final investment decision (FID) for the Ruwais LNG project and the award of the EPC contract at a meeting of the Executive Committee of the ADNOC Board of Directors.
The project includes the recovery of gas currently flared in the Basra region to supply power generation plants. (Image source: Adobe Stock)
Wood has been awarded a US$46mn, three-year contract by TotalEnergies in Iraq related to Iraq’s Associated Gas Upstream Project, part of the Gas Growth Integrated Project (GGIP) in Southern Iraq
Wood will provide front-end engineering design (FEED), detailed design, procurement support, and construction and commissioning assistance for the first phase of the project. The contract will be delivered by Wood’s teams in Basra and Dubai, creating 100 new positions.
The GGIP includes the recovery of gas currently flared in the Basra region to supply power generation plants, along with the construction of a seawater treatment unit and a 1GW solar power plant. Once implemented, this project will increase electricity supply to the Iraqi people, advance Iraq’s energy self-sufficiency, reduce harmful climate effects from flared gas in southern Iraq, and allow for the export of gas products to new markets. The consortium implementing the project is composed of TotalEnergies (45%), QatarEnergy (25%) and Iraq’s National oil company, the Basrah Oil Company (30%).
Shaun Dewar, senior vice president of Operations, Middle East and Africa at Wood said, “We are proud to support TotalEnergies on this project, which aligns with our shared commitment to pursue a secure and sustainable energy supply. We have a long-standing history of delivering engineering and consulting services in the region and this contract reaffirms our reputation for excellence.
"This project will improve environmental sustainability through emissions reduction efforts. As part of this agreement, Wood will also continue to invest in local employment and skills development in the Basra region.”
DNV’s Technology Centre in Groningen plays a pivotal role in tackling the challenges of CO2 flow metrology to advance projects related to CCUS. (Image source: DNV)
DNV, the independent energy expert and assurance provider, has initiated CO2MET, a joint industry project (JIP) to establish traceable flow standards for CCUS
The project brings toegether equipment suppliers, major transmission system operators and exploration and production companies.
As demonstrated by a DNV study, there are currently significant gaps in demonstrating compliance with CO2 metrology for the EU Emissions Trading System (ETS) and other international regulations, with two significant challenges being the absence of an officially recognised and traceable standard for measuring CO2 volume under dynamic conditions for gas, liquid, and dense phase CO2; and the lack of flow laboratories conducting research and calibrations under the necessary process conditions.
The JIP is divided into two initiatives:
1. CO2MET Gas: Centered around gas applications, this project is expected to conclude in June 2024.
2. CO2MET LIQ: Focusing on conditions related to liquid, dense, and supercritical CO2, this project requires the design and construction of a new facility at DNV’s Technology Centre in Groningen to enable the development of traceable flow standards. First results are anticipated by the end of 2024, with current participants including Shell, TotalEnergies, Equinor, Gasunie, Santos, Inpex, and Gassco. New participants are welcome to join.
"As the world advances towards decarbonisation, DNV is proud to lead the establishment of essential standards for CO2 metering to ensure the global success of CCUS initiatives. By convening industry stakeholders to develop trusted guidelines, recommended practices, and standards, we ensure the reliable operation of critical assets and systems. This involves setting operational limits and ensuring performance throughout the lifespan of industrial assets," explained Prajeev Rasiah, executive vice president and regional director Northern Europe, Energy Systems at DNV.
“DNV’s Technology Centre in Groningen plays a pivotal role in tackling the challenges of CO2 flow metrology to advance projects related to CCUS," added Rene Bahlmann, head of Section for DNV's Technology Centre Groningen, Energy Systems at DNV.
Strong demand is still expected from the booming petrochemicals sector. (Image source: Adobe Stock)
Oil 2024, the latest edition of the IEA’s annual medium-term market report, forecasts that growth in global demand for oil will slow in the coming years as energy transitions advance, with a major supply surplus emerging this decade
The report forecasts that global oil demand, which including biofuels averaged just over 102mn bpd in 2023, will level off near 106mn bpd per day towards the end of this decade, with growth in demand peaking before 2030.
Speaking at a press briefing, Dr Fatih Birol, IEA executive director, highlighted three major drivers of the slowdown:
1. – Transportation – The increasing penetration of electrical vehicles (EV)s. in China, Europe, USA and increasingly the emerging markets, currently accounting for more than one in five car sales. Dr Birol noted the increasing cost competitiveness of electrical cars in China, the driver of EV car penetration. Ongoing fuel efficiency improvements are also a factor;
2. – Electricity generation – Many of the oil producers in the Middle East and North Africa, who currently use a significant proportion of oil to generate electricity, are shifting to renewables or natural gas for electricity generation;
3. – China – Most importantly, the expected slowdown in China’s economic growth to around 4% from just over 6% a year, given the country has accounted for around 60% of demand growth in the last 10 years.
While strong demand growth is expected from fast-growing economies in Asia, as well as from the aviation and booming petrochemicals sectors, this will not be enough to offset the above factors.
Surge in production capacity
At the same time, a surge in non-OPEC global oil production capacity, led by the USA and other producers in the Americas, such as Argentina, Brazil, Canada and Guyana, is expected to outstrip demand growth between now and 2030, with non-OPEC producers expected to account for three quarters of the expected increase to 2030, or 4.6mn bpd. Saudi Arabia, the United Arab Emirates (UAE) and Iraq are expected to lead a 1.4 mn bpd rise in OPEC+ oil capacity.
Total supply capacity is forecast to rise by 6mn bpd to nearly 114mn bpd by 2030 – a staggering 8mn bpd above projected global demand, the report finds. There is also the prospect of OPEC+ rewinding production cuts from later this year. This would result in unprecedented levels of spare capacity over the forecast period, with major implications for oil markets – including for producer economies in OPEC and beyond, as well as for the US shale industry.
“Some producers are already making adjustments, with Saudi Arabia putting on hold planned oil capacity expansion to focus on gas, which is where we see the main demand this coming decade,” commented Toril Bosoni, the head of the IEA’s Oil Industry and Markets Division. at the press briefing.
“This report’s projections, based on the latest data, show a major supply surplus emerging this decade,” said Dr Birol, noting the consequences of an oversupply would be downward pressure on prices, with implications both for producers and consumers. “Oil companies may want to look at these supply and demand trends and make sure their business strategies and plans are in line with market realities,” he added.
According to the report, global refining capacity is on track to expand by 3.3mn bpd between 2023 and 2030, well below historical trends. However, this should be sufficient to meet demand for refined oil products during this period, given a concurrent surge in the supply of non-refined fuels such as biofuels and natural gas liquids (NGLs). This raises the prospect of refinery closures towards the end of the outlook period, as well as a slowdown in capacity growth in Asia after 2027.
OPEC forecasts that global oil demand will grow by an average of 2.3 mn bpd, year-on-year in the second half of 2024. (Image source: Adobe Stock)
In an article on world oil market prospects for the second half of 2024, in its June monthly oil market report, OPEC forecasts that global oil demand will grow by an average of 2.3 mn bpd year-on-year in the second half of 2024, and by 2.2mn bpd for 2024 in total
OPEC notes that steady global economic growth has continued in the first half of 2024. Growth in non-OECD economies has held up quite well, and better than expected in the BRIC economies. If growth in major OECD economies accelerates in the second half of the year, with non-OECD economies maintaining the momentum of the first half of the year, economic growth for the year could potentially improve further. At present, OPEC’s global economic growth forecast stands at 2.8% for 2024 and 2.9% for 2025, unchanged from OPEC’s May assessment.
China the primary oil demand driver
Demand growth will be driven by non-OECD oil demand, forecast to grow on average by 2.1mn bpd, year-on-year, in the second half of 2024, with China expected to be the primary oil demand driver. The ongoing air travel recovery, healthy driving levels, as well as improvements in manufacturing sector activities are projected to support jet/kerosene, gasoline and distillate demand in the region.
In the OECD, oil demand is estimated to increase by 0.25mn bpd, year-on-year, in the second half of 2024, driven mainly by the USA. Jet kerosene and gasoline are anticipated to be the main regional oil demand drivers, on the back of the summer driving season and continued healthy air travel activity.
OPEC forecasts that in 2025, global oil demand will see see robust growth of 1.8mn bpd, year-on-year, again led by demand in the non-OECD region, which is forecast to increase by 1.7mn bpd.
In anticipation of the OPEC and IEA monthly reports and demand forecasts, and with hopes of increased summer demand, Brent crude has risen slightly to around US$81/bbl, following three weeks of losses related to the OPEC+ agreement to phase out some production cuts later this year.
The signing ceremony. (Image source: Worley)
bp and Worley are building on their longstanding collaboration with the formation of a new strategic alliance across bp's global site projects, including in the Middle East
The alliance is designed to maximise efficiency, continuous improvement and value creation. It will save an initial estimated US$40mn over two years in locations where Worley holds a services contract, ie Gulf of Mexico, Oman, Mauritania and Senegal oil and gas producing regions and the Cherry Point, Whiting, Rotterdam, Gelsenkirchen, and Lingen refineries.
Deepening collaboration
bp and Worley will deepen collaboration across a portfolio of site projects by leveraging digital capability and global scale to further drive efficiency across engineering, procurement, construction development and management.
“We remain focused on improving safety, reducing emissions, high value activity, and reducing cost. This alliance increases our operational effectiveness through centralisation, standardisation and simplification, helping us safely grow the value of bp,” said Niall Maguire, VP Site Projects, bp.
“This alliance builds on our successful partnership in the Site Projects Efficiency Plan (SPEP) over the past two years, where we’ve worked together to drive down costs across bp’s global operations. Our shared history and values position us well to identify and implement solutions as we continue to create value and deliver sustainable change throughout bp’s portfolio of projects,” said Mark Brantley, group president EMEA and APAC, Worley.
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The panel addressed the role of gas in the energy transition. (Image source: AIEN International Energy Summit)
A panel session at the AIEN International Energy Summit in Bangkok, Thailand, focused on the role of gas in the energy transition, looking at how natural gas, particularly LNG, impacts the security, affordability and sustainability of a robust energy future
Moderator Edward Taylor, partner, A&O Shearman asked the question, is natural gas still relevant to the energy evolution?
Andrew Kirk, vice president Origination, LNG, B Grimm said it will continue to play a big role. “The issue with renewables capacity and their intermittent nature means we will continue to need natural gas. New technologies such as batteries are still a long way off from being able to supply a full grid load. Renewables are also geographically bespoke and not available to all. They can provide solutions in areas with limited demand but the cost to run a city like Bangkok is so problematic. Many countries will not be able to cope with the cost increase of moving straight to renewables.”
Steve Morrell, senior vice president, ExxonMobil PNG LNG, agreed. “The conversation about gas has never been more pertinent. Whether we are talking about emissions, the war in Ukraine, or living standards around the world – gas has its part to play. There are also so many conversations about the rise of Artificial Intelligence. But where is the power coming from to feed these data centres that will play such a large part?"
Accelerating the energy transition
“Gas can accelerate the energy transition today. We can stop coal today. We can fill the gaps in intermittent renewables today. So, what is holding us back?”
“We are far enough along the energy transition to separate the aspirational and the unachievable,” said Kirk. “We are hearing these ideological positions where gas is considered unnecessary without having a sensible conversation about alternatives. Moving straight to renewables will create very unstable energy grids that will stifle economic growth.”
With the global population set to grow by 2bn by 2050, Morrell believes the responsibility will grow even higher on the energy companies to provide affordable, reliable and sustainable energy, and natural gas will play a large role in this.
“Gas is well understood and relatively cleaner compared with coal. The infrastructure is there and expanding. There is a lot to be said for the marriage between gas and intermittent renewables. Moving from a well-known system to new technology – it isn’t going to happen overnight. We could put more gas into the system. This will help see a 60% reduction in emissions if we replace coal, without even using new technologies.”
“One of the main problems is how to fill the gaps from renewables,” Kirk concluded. “The answer is gas. The stage is set for a reasoned conversation about gas.”
High impact exploration drilling declined in 2023, but there are still significant reserves of hydrocarbons to be discovered. (Image source: Adobe Stock)
The compressor trains will be used in the Hassi R'Mel gas field in Algeria. (Image source: Adobe Stock)
Hanadi Khalife, head of Middle East, ICAEW. (Image source: ICAEW)
The latest Economic Insight report for the Middle East, commissioned by ICAEW and compiled by Oxford Economics, highlights the impact of extended oil production cuts on growth in the GCC region
The GCC growth forecast has been revised down to 2.2% from 2.7% three months ago, although non-energy sectors remain resilient, according to the report.
Due to the OPEC+ group’s extension of voluntary output cuts through Q3, GCC oil output will decline by 2.6% this year, according to the report. Saudi Arabia, which is bearing the brunt of production cuts, will see oil activities contract by 5% this year, down from a predicted growth of 0.7% three months ago. However, as voluntary production cuts are reversed in 2025, energy sectors will begin making positive contributions to GCC growth.
Qatar’s GDP growth for this year is forecast at 2.2% and is expected to rise to 2.9% in 2025, as a result of its North Field gas expansion project, which is not affected by OPEC+ production quotas. Bahrain’s GDP growth is 3.1% this year, but is expected to slow to 1.4% in 2025. The country continues to diversify its economy and reduce reliance on oil revenues.
Positive outlook for non-oil sectors
There is a positive outlook for non-energy sectors across the GCC, which will continue to grow. In Saudi Arabia, giga-projects are expected to boost investments in construction, manufacturing and transportation. Strong momentum in the sports and entertainment, hospitality and tourism sectors are expected given the Vision 2030 focus on these sectors. Tourism is a strategic sector in other countries too, and will remain a key growth driver. Tourism activity has rebounded strongly, with record visitor numbers across the GCC in 2023, extending into this year.
Saudi Arabia, Bahrain and Kuwait are likely to record see budget deficits this year and in 2025 as the current oil price level is below the fiscal breakeven point, the report forecasts. However, the overall GCC budget position will likely remain in surplus, bolstered by strong financial standings and favourable credit ratings, allowing continued access to funding from capital markets and IPOs.
Hanadi Khalife, head of Middle East, ICAEW, said, “While geopolitical risks present headwinds for the GCC and wider Middle East, we are encouraged by the ongoing commitment to diversification and sustainability targets. Qatar, for example, became the first GCC sovereign to issue green bonds despite not having explicit net-zero targets. Bahrain is also aligning its non-oil economic growth with its Economic Vision 2030 and COP28 commitments to reduce carbon emissions by 30% by 2035.”
Scott Livermore, ICAEW economic advisor, and chief economist and managing director, Oxford Economics Middle East, added, “Although the region faces escalating pressures amid slowing global economies, the GCC remains relatively positive due to strong bilateral deals and investment.”
Aarti Dange, customer experience leader, Middle East and Africa and MEA DE&I leader, at Emerson. (Image source: Emerson)
Ola Balbaa, wells engineer, bp and young professional member of the POWERful Women board. (Image source: POWERful Women)
The new process will improve efficiency and reduce carbon footprint. (Image source: Honeywell)
Honeywell has launched a new process to improve the efficiency and sustainability of light olefin production
The naphtha to ethane and propane (NEP) technology generates a tunable amount of ethane and propane from naphtha and/or LPG feedstocks, generating more high-value ethylene and propylene with reduced production of lower-value by-products compared to a traditional mixed-feed steam cracking unit and resulting in net cash margin increases. An NEP-based olefins complex also reduces CO2 intensity per metric ton of light olefins produced by 5 to 50% versus a traditional mixed-feed steam cracker.
More efficient production
“The petrochemical industry faces strong competition and challenges in obtaining raw materials globally,” said Matt Spalding, vice president and general manager of Honeywell Energy and Sustainability Solutions in MENA. “Our technology helps to enable more efficient production of ethylene and propylene, two chemicals which are in high demand, while also helping our customers lower their carbon emissions.”
The new solution is a part of Honeywell’s Integrated Olefin Suite technology portfolio to enhance the production of light olefins.
The programme will optimise asset lifecycle, enhance machinery performance and improve overall reliability. (Image source: Adobe Stock)
TotalEnergies will support the refinery with its global oil and feedstock supply capacity. (Image source: Adobe Stock)
Bandlock2 closures are now available in diameters in excess of 100 inches (254cm). (Image source: Celeros Flow)
Celeros Flow Technology has up-scaled its Bandlock2 quick-opening closures so they can be incorporated on very large diameter pressure vessels and pipelines
The need for larger diameter closures is being driven by the fact that pipelines and pressure vessels are getting bigger, as a result of the growing global demand for essential products such as water, gas and oil. Available in diameters up to 100 inches (254cm), the larger diameter Bandlock2 closures offer customers the potential to reduce the number of pressure vessels and associated pipework required for any given application.
Same quick-opening mechanism
Manufactured by Celeros FT brand GD Engineering, very large diameter Bandlock2 closures offer the same proven quick-opening mechanism and sealing design as standard diameter closures. Full access is still achievable in less than a minute. They feature a unique, self-energising lip seal with integral anti-extrusion spring and offer full vacuum capability.
A hand-operated pressure warning screw assures safe operation. This is integrated into the closure mechanism and prevents the door from being unlocked until it is confirmed that the vessel’s internal pressure has been relieved. Additional secondary safety features, such as mechanical key interlocks, can be fitted and integrated with control valve operations. In addition, the locking band can be seen at all times, which satisfies design code requirements and means that the operator can actually see that the door is securely closed and locked.
The new Redline+ Packing sealing system features new materials and enhanced geometry to optimise performance. (Image source: GDEP)
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More than 175 people, including senior representatives of the region's leading oil and gas companies, attended a very topical and engaging live webinar hosted by Oil Review Middle East entitled “Beyond Boundaries: Advanced Surveillance for Oil and Gas Remote Facilities”
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The overall pace of the transition has slowed, with economic volatility, heightened geopolitical tensions and technological shifts all having an impact. (Image source: Adobe Stock)
The global energy transition to a more equitable, secure and sustainable energy has lost momentum in the face of increasing uncertainty worldwide, according to a new World Economic Forum report
While 107 of the 120 countries benchmarked in the report demonstrated progress on their energy transition journeys in the past decade, the overall pace of the transition has slowed, with economic volatility, heightened geopolitical tensions and technological shifts all having an impact. However, increasing global investments in renewables and significant growth in energy transition performance in sub-Saharan Africa over the past decade are positives.
Fostering Effective Energy Transition 2024, published in collaboration with Accenture, uses the Energy Transition Index (ETI) to benchmark 120 countries on the performance of their current energy systems, with a focus on balancing equity, environmental sustainability and energy security, and on their transition-readiness.
“We must ensure that the energy transition is equitable, in and across emerging and developed economies,” said Roberto Bocca, head of the Centre for Energy and Materials, World Economic Forum. “Transforming how we produce and consume energy is critical to success. We need to act on three key levers for the energy transition urgently: reforming the current energy system to reduce its emissions, deploying clean energy solutions at scale, and reducing energy intensity per unit of GDP.”
Europe leads the rankings
Europe continues to lead the ETI rankings, with the top 10 list for 2024 fully composed of countries from that region. Sweden comes top, followed by Denmark, Finland, Switzerland and France.These countries benefit from high political commitment, strong investments in research and development, expanded clean energy adoption – accelerated by the regional geopolitical situation, energy-efficiency policies and carbon pricing.
China and Brazil have advanced significantly in recent years, primarily driven by long-term efforts to increase the share of clean energy and enhance their grid reliability.
The gap in overall ETI scores has narrowed between advanced and developing economies, although clean energy investment continues to be concentrated in advanced economies and China. This underscores the need for financial support from advanced nations to facilitate an equitable energy transition in emerging and developing nations and forward-thinking policy-making in all nations to foster conducive investment conditions.
Over the past decade, the Middle East, Africa and Pakistan region has seen a 7% growth in its ETI score, which has stagnated in the last three years, according to the report, a significant barrier being the decline in finance and investment over this period. The region’s heavy reliance on oil revenues poses a challenge for a sustainable energy transition. Its regional score lags behind all regions except sub-Saharan Africa.
While the world remains off-track to meet net-zero ambitions by 2050 and limit global warming to no more than 1.5C, there has been notable progress in energy efficiency and an increase in the adoption of clean energy sources.
Innovation is a key enabling factor for the energy transition and can reduce costs, scale key technologies, renew and reskill the workforce and attract investments, the report stresses. Digital innovations, including generative AI, offer significant opportunities to reinvent the energy industry by enhancing productivity. Generative AI's ability to analyse vast quantities of data can provide innovative forecasts and solutions, or streamline existing operations to increase efficiencies, among other benefits. However, it will be crucial to responsibly and equitably address the risks and challenges posed by these technologies.
“C-suites consistently tell us a clear business case is a prerequisite for attracting investments in the energy transition, especially in the face of higher interest rates and the emerging talent shortage," said Muqsit Ashraf, group chief executive, Accenture Strategy. "We believe that a strong digital core, enabled by generative AI, can boost productivity, enhancing returns and talent availability and unlocking a new wave of investments.”
The joint venture aims to accelerate carbon capture for industrial decarbonisation at scale. (Image source: Adobe Stock)
DNV’s Technology Centre in Groningen plays a pivotal role in tackling the challenges of CO2 flow metrology to advance projects related to CCUS. (Image source: DNV)
ARO Drilling and IMI announce first Kingdom jack up rig (Image source: ARO)
The oil and gas industry has been increasingly adopting AI technology in recent years, and this trend is expected to continue in the coming years. (Image source: Adobe Stock)
GAC Saudi Arabia has extensive operations at major ports in Saudi Arabia. (Image source: GAC Saudi Arabia)
The integrated Marsa LNG project is intended to be the first LNG bunkering hub in the Middle East. (Image source: TotalEnergies)
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SmartMaster can be used with a range of ABB and third-party instruments. (Image source: ABB)
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Michael Monica, director sales, marketing and customer care at GPT Industries signs the agreement with Mohamed Altaf, sale manager, Abdulla Fouad Energy Services. (Image source: Alain Charles Publishing)
Oman LNG signed various agreements with Shell Gas to secure its gas supply until 2034. (Image source: Adobe Stock)
Licenses for 29 projects are on offer. (Image source: Adobe Stock)
Tethys Oil is currently conducting final preparations ahead of the rig mobilisation for the drilling of the first exploration well on Block 58, Kunooz-1 in Fahd.
Source: SafeStart
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The new discoveries will bolster Aramco’s strategy to increase gas production by more than half over 2021 levels, through 2030. (Image source: Adobe Stock)
Abdulrahman Abdulla Al Seiari, chief executive officer, ADNOC Drilling. (Image source: ADNOC Drilling)
Prajeev Rasiah, executive vice president & regional director Northern Europe, Energy Systems at DNV. (Image source: DNV)
Amin H. Nasser, CEO of Aramco. (Image source: Aramco)
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