New technologies can boost regional oil & gas sector; Crescent Petroleum
Crescent Petroleum CEO shares insights on the impact of technology on the region’s energy sector
Crescent Petroleum has highlighted that adopting new technologies can improve the region's energy sector, in particularly at a time when oil prices have reduced and global competition from new suppliers has heightened.
During a keynote at INSEAD Leaders Forum, Majid Jafar, CEO of Crescent Petroleum and Vice-Chairman of the Crescent Group revealed the challenges from lower oil prices on company operating models and regional budgets, as well as the need for keeping up with global trends in the face of competing supplies from US shale oil and other regions.
However, he stated the impact of new technologies such as electric cars and alternative energy sources could help the sector.
Jafar also stated that the Middle East holds 48% and 43% of global oil and gas proved reserves respectively, almost half, though production is only 32% for oil and 18% for gas, implying much greater potential than has been realised to date.
He said: "The widespread adoption of new technologies is therefore critical to maximise recovery rates, maintain cost advantage, extend resource life and ensure security of supply to global and regional consumers."
"Low fuel prices, or even outright fuel subsidies, don't encourage take-up of new energy efficient options or private sector investment in the best energy technology or infrastructure, nor innovations in energy technology specific to the requirements of the region itself: for example, reducing air cooling costs for homes. Only by removing such pricing distortions will the Middle East region make material gains in energy use," Jafar added.
He further mentioned that the impact of digital technology in the energy sector is widely misunderstood, as the focus tends to fall on "trendy" innovations rather than the much larger and more significant incremental improvements in efficiency, design and capability of established sectors.