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Declines in output from existing oil and gas fields globally have accelerated – largely due to a higher reliance on shale and deep offshore resources – but are lower in the Middle East than other parts of the world, according to a new report from the IEA

The new report, 'The Implications of Oil and Gas Field Decline Rates', draws on production data from around 15,000 oil and gas fields from around the world, and highlights the wide variation in decline rates across field types and geographies, with production from larger fields declining more slowly than from smaller fields, and offshore fields declining more quickly than onshore fields. The declines rates for the Middle East and Russia, which are home to the majority of conventional onshore supergiant fields, are therefore much lower than those elsewhere. This could mean that oil production from existing fields would become more concentrated among the OPEC member countries and Russia, who could see their share of global oil production rise from 43% today to 53% in 2035 and more than 65% in 2050, according to the IEA.

In Saudi Arabia and the UAE, where major upstream expansion projects are underway, production growth from approved projects, along with existing spare capacity and continued investment in existing projects, can more than offset the loss of production from natural declines, especially as decline rates are relatively low in both countries.

Onshore supergiant oil fields in the Middle East decline at less than 2% per year, while smaller offshore fields in Europe average more than 15% per year, according to the report. Tight oil and shale gas decline even more steeply: without investment, output falls by more than 35% over one year and a further 15% over a second year. The Middle East has the lowest oil post-peak decline rate at 1.8%, compared with global average annual post-peak decline rate of 5.6% for conventional oil and 6.8% for conventional natural gas.

IEA executive director Fatih Birol noted that nearly 90% of upstream investment annually is dedicated to offsetting losses of supply at existing fields. “Decline rates are the elephant in the room for any discussion of investment needs in oil and gas, and our new analysis shows that they have accelerated in recent years. In the case of oil, an absence of upstream investment would remove the equivalent of Brazil and Norway’s combined production each year from the global market balance. The situation means that the industry has to run much faster just to stand still. And careful attention needs to be paid to the potential consequences for market balances, energy security and emissions.”

The development of new resources would therefore be need to keep up the level of global oil and gas production. Even with continued spending on existing fields, more than 45mn bpd of oil and nearly 2,000 bcm of gas from new conventional fields would be required by 2050 to maintain production at today’s levels, according to the IEA.

The report also highlights that it has taken almost 20 years on average to move from issuing an exploration licence for oil and gas until first production. Around 230 billion barrels of oil and 40 trillion cubic metres (tcm) of gas resources have been discovered that have yet to be approved for development, mainly in the Middle East, Eurasia, and Africa. Developing these resources could add around 28 mn bpd and 1,300 bcm by 2050, the IEA says.

OSSO, the specialist provider of fluid temperature control and separation solutions, has introduced a new service line providing maintenance and support for Plate Heat Exchanger (PHE) equipment for the UAE and wider Middle East

From its Abu Dhabi headquarters, OSSO will provide an end-to-end offering including inspection, chemical cleaning, pressure testing and recertification for all PHE models along with the supply of both OEM and non-OEM PHEs parts. The service also includes non-destructive thermographic imaging for early fault detection and maintenance. OSSO provides full workshop servicing and onsite maintenance to ensure continued reliability and performance.

This latest launch builds on OSSO’s expansion in the region. The company established its dedicated UAE entity in late 2024, headquartered in Abu Dhabi, and expanded its existing floorspace to accommodate growing operations. It has expanded its regional workforce, with further investment and recruitment planned.

Daniel Burbridge, general manager for the Middle East, said, “Since opening our regional entity, we’ve had numerous conversations with customers highlighting strong demand for specialist PHE servicing. PHEs are critical across many sectors, but their reliability can mean they don’t get the same regular attention as other assets. This was a logical next step for us in the Middle East, drawing on our existing expertise to deliver comprehensive support from Abu Dhabi and help customers keep equipment performing at its best while avoiding unexpected shutdowns.”

James Scullion, CEO of OSSO, added, “This is a region with huge potential and opportunity across many sectors. We’re always exploring ways to expand our capabilities here, and launching PHE servicing from Abu Dhabi is a clear progression. It builds on the strength of our local team and the success we’ve already seen since establishing our entity last year. This is a market where we see strong growth ahead, and we’re excited about what the future holds as we continue to invest.”

The Middle East and Asia are driving global refining growth, according to new research from Rystad Energy

Middle Eastern refiners have expanded their refining capacity in the last 20 years from nearly 8mn bpd to around 13mn bpd, with major additions concentrated in Saudi Arabia and the UAE, as the region focuses on adding value through downstream integration. This includes the development of complex, large-scale refineries designed not only to serve growing domestic demand but also to supply refined products to key export markets across the globe. Saudi Aramco for example has invested heavily in expanding its refining footprint, developing advanced complexes such as Jazan and forming joint ventures including YASREF and SATORP.

China has nearly doubled its refining capacity over the past two decades, from 10.6mn bpd in 2005 to 18.8mn bpd in 2025, to meet rising domestic demand and improve energy security, while also positioning the country as a key exporter of refined products. India’s refining capacity has grown from 2.9 million bpd in 2005 to around 5.2mn bpd this year, for similar reasons, including strong domestic consumption and strategic investments in refining infrastructure.

“The Middle East and Asia are driving global refining growth by focusing on large, integrated mega-refineries that secure energy supplies and meet rapidly rising demand. In contrast, Europe and the US are retreating, with older, less efficient plants closing due to high costs and uncertainty over future fuel needs. This shift has sparked a wave of rationalisation, where smaller, less flexible refineries are being shut down while bigger, more adaptable facilities gain ground through economies of scale. Today, nearly all new projects are larger and more economically viable, so even though the total number of refineries worldwide has declined, overall refining capacity continues to grow significantly,” said Arne Skjaeveland, vice president, Oil & Gas Research, Rystad Energy.

Rystad Energy’s research shows that in the last two decades, global primary refining capacity has increased by about 13.5 million barrels per day (bpd), or roughly 15%, while the number of refineries has been in decline since 2011 driven by ageing infrastructure, shrinking profit margins and weakening fuel demand as electrification advances.

As for emissions, emissions intensity across the sector has held relatively steady overall. Asia, followed by the Middle East, has seen total refinery emissions surge, driven by rapid growth in capacity and throughput. The newer, highly complex refineries in Asia and the Middle East tend to consume more energy but often achieve greater carbon efficiency per barrel thanks to modern technologies and tighter integration. Meanwhle, emissions in North America and Europe have remained flat or declined, largely as a result of retrofits and refinery closures rather than gains in carbon efficiency.

Cloudera, the company bringing AI to data anywhere, has announced plans to establish an office in Saudi Arabia in early 2026, underlining its commitment to the Kingdom and its support for Vision 2030 plans for accelerated digital transformation

Cloudera has supported customers in KSA for more than six years, across all major industries, including Telco, Banking & Financial Services, Oil & Gas, and Government. By establishing a local legal entity, the company will be better able to support national priorities in data rules, innovation, and skills training. In light of Saudi cloud and data regulations, establishing a local legal entity also supports compliance obligations.

Cloudera in Arabia will support the country’s strategic priorities around data sovereignty, regulatory compliance, and digital acceleration, while enabling scalable, enterprise-grade AI initiatives across diverse operating environments.

Cloudera provides a unified, open-source foundation that gives 100% access to 100% of the data, regardless of where it resides. For Saudi Arabia’s highly regulated sectors, such as oil and gas, finance, health, and government, Cloudera’s platform supports strict governance, traceability, and compliance in GovCloud, Sovereign Cloud, and air-gapped data centers. This ensures real-time reasoning and predictive insights without compromising control or security.

By leaning on a robust open-source ecosystem and decades of innovation, Cloudera enables Saudi organizations to assert control over data, workloads, deployments and spend. This reduces vendor lock-in, accelerates innovation cycles, and aligns with national digitisation goals.

Ahmad Issa, regional vice president, Cloudera, said, “Customers want trusted partners on the ground who understand how the rules work in practice. This announcement solidifies our relationships, helps build stronger partnerships, and creates opportunities to train and hire local talent so Cloudera Arabia can grow alongside the Kingdom’s transformation.

“Saudi Arabia is investing heavily in building one of the most ambitious digital economies anywhere. By creating a local entity, we are making clear our commitment to the Kingdom’s long-term goals. Customers can rely on our hybrid platform to keep their data where it belongs, meet compliance requirements, and still unlock the full benefits of AI at scale.”

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While ammonia and methanol are gaining traction as low-carbon fuels and hydrogen carriers to support the global energy transition, large-scale adoption is slow due to uncertain demand, says data and analytics company GlobalData

Demand for low-carbon ammonia and methanol is being driven by industries such as shipping, power generation, fertilizers, and chemicals, given their potential to decarbonise existing operations. GlobalData’s Strategic Intelligence report, “Ammonia and Methanol in Energy Transition,” reveals that countries such as Japan, South Korea, China, and members of the European Union are backing low-carbon projects, while companies including Yara, Maersk, CF, and Mitsubishi are exploring large-scale investments to boost their production.

Low-carbon ammonia capacity is estimated to grow to nearly 250 million tonnes per annum (mtpa) by 2030, with more than 460 upcoming plants globally. Low-carbon methanol is also projected to grow, with plant numbers approaching 150 by 2030. However, many projects are in early stages of development, with some hydrogen-linked initiatives already seeing delays or cancellations.

The report also highlights that low-carbon ammonia and methanol are closely linked to the scaling of hydrogen, acting as carriers for transport and storage. However, growth depends on stronger infrastructure commitments, technology advancements, and regulatory requirements. Shipping is seen as the most promising immediate opportunity, but significant investment and regulatory clarity are required to move beyond pilots.

Ravindra Puranik, Oil and Gas analyst at GlobalData, commented, “Low-carbon ammonia and methanol could complement the energy transition by acting as fuels and hydrogen carriers, but their role is far from guaranteed. Cost competitiveness, safety standards, and infrastructure development will be critical. Without supportive regulation and faster project execution, many of the current net-zero ambitions may not translate into reality.

“Low-carbon ammonia and methanol initiatives had a promising start earlier this decade. However, the pace of development is already slowing, with some high-profile hydrogen projects seeing cancellations or postponement. Combined with high production costs and technical challenges in handling, this raises doubts about whether low-carbon ammonia and methanol can achieve the scale once envisioned. These challenges underline the gap between announced capacity and what will realistically materialise by 2030.”