Ongoing market challenges seems to be a stubborn key theme not just regionally but globally when it comes to the oil industry.
Ahead of the Middle East’s largest oil and gas industry event ADIPEC, taking place later this year in November, industry leaders have been commenting on the importance of innovation for the sustainability and resilience of the whole sector.
A senior manager at the Kuwait Oil Company (KOC) asserts that the GCC petroleum industry should also focus on efficiencies in order to help maintain the value of the region’s rich resources.
For investors and decision makers, resilience in the industry has emerged as one of the most critical issues following what has been an extremely challenging year.
According to the OPEC World Energy Trends Report 2015, there has been a cooling economic outlook in non-OECD markets, particularly China, where rapid increases in demand appear to be maturing.
But more optimistic forecasts show continued growth in the global economy, and oil is predicted to remain the most significant energy source.
In the coming months, GCC suppliers can expect to benefit from this growth as the balance in supply and demand stabilizes, while the development of high-cost petroleum resources such as shale oil, is likely to be more subdued as investors question their long-term viability.
As with any challenging market conditions, history has shown that opportunities often co-exist for innovative approaches and new market entrants, particularly where the oil services industry is concerned. The growing international energy community will continue to develop and thrive through the development of new technologies and the evolvement of new levels of efficiencies.
Business opportunities in Kuwait will continue to open up for companies setting up, looking for strategic business partners/silent shareholders or commercial agency agreements that help support the country’s long-term status as a reliable supplier in global markets.
For more information on setting up a company or a branch office in Kuwait, please get in touch with one of our advisors via our website www.aeongulf.com