Digitalisation is expected to continue to play a significant role in transforming the oil and gas industry in the Middle East and Africa, potentially unlocking US$1.6 trillion to US$2.6 trillion by 2025, according to a whitepaper published by DHL Global Forwarding
According to the air, ocean and road freight specialist, this is achieved as companies leverage digitalisation to improve margins, safety standards, as well as reduce emissions and water consumption.
The whitepaper predicts that owing to pandemic-induced slowdowns in travel, global oil demand will not reach pre-COVID-19 levels before the end of 2021. Oil and gas companies in the Middle East and Africa region (MEA) need to take bold decisions to quickly reposition themselves, including redefining partnerships across the supply value chain, building resilience and going digital. For example, drones and autonomous robots can potentially reduce drilling and completion costs by 20% in deep-water areas and 25% in inspection and maintenance of assets.
Amadou Diallo, CEO, DHL Global Forwarding Middle East and Africa, who is also executive sponsor for the oil and energy sector at Deutsche Post DHL (DPDHL) Group, commented, “The energy sector is grappling with multiple challenges due to the pandemic but it is not all doom and gloom however. While it is more critical than ever to ensure the smooth completion of projects, it is equally pertinent that energy companies leverage technology to offer smarter, simplified and greener solutions.”
The DHL whitepaper notes that increased investment in downstream projects will generate more value per barrel of oil through production of value-added specialty chemicals and plastics. Over half of the global oil demand growth by 2025 is expected to come from the petrochemical industry – and this is evident in the region where national oil companies are already partnering with major players across major demand markets. For instance, Saudi Aramco’s non-binding deal for 20% stake in Reliance’s crude oil-to-chemical (COTC) operations.
