A new report produced by Oxford Business Group (OBG) in partnership with Alkhorayef Petroleum explores the key role that digitalisation and innovation are poised to play in the global oil industry’s recovery
The “Oil & Gas Services: Post-Pandemic Prospects” report, part of OBG’s Covid-19 Response Report (CRR) series, provides data-driven analysis of the industry’s pandemic performance and prospects for growth, with a focus on three markets - Saudi Arabia, Egypt and Colombia.
Saudi Arabia’s plans to increase its market share by boosting production capacity over the medium to long term, as production in the USA and Russia gradually slows, are a key focus of the report. The Kingdom’s competitive advantages include low extraction costs and well-established energy infrastructure.
Egypt has been making strategic efforts to increase production from existing sites, while also accelerating new exploration, most notably in the promising Western Desert region, where new technology is expected to reduce previously prohibitive costs.
While in Colombia, moves are under way to step up exploration and production, including the exploitation of new gas reserves, to help improve the sector’s competitiveness and counter the challenge of high production breakeven prices.
The report explores Alkhorayef Petroleum’s strategy for navigating the pandemic and plans for expansion, which include maintaining a sharp focus on R&D, fostering regional partnerships and developing human capital.
Jana Treeck, OBG’s managing director for the Gulf, said that innovative solutions are expected to be key in helping industry players to enhance operational efficiencies at a time when maximising cost effectiveness and minimising environmental impact are both high on the agenda.
“The oil price crash of 2014-15 was still weighing on the global oil industry’s performance when the pandemic hit, leaving upstream operators and service providers facing cost-related challenges and lower profit margins,” she said. “While ongoing uncertainty relating to Covid-19 variants could mean an uneven global recovery, successful vaccine rollouts should contribute to a sustained rebound in global oil demand and prices in the near term.”
The report can be downloaded at https://oxfordbusinessgroup.com/news/report-how-covid-19-pandemic-re-shaping-global-oilfield-services-sector
