The CEO of the Emirates National Oil Company (ENOC) has spoken about the tough times facing the Middle East, but called for the oil and gas industry to take advantage of the crisis by evaluating their businesses from a different perspective.
Speaking at the 17th Annual Middle East Petroleum and Gas Conference (MPGC), held in Dubai this week, Saeed Khoory set the agenda with his opening speech.
“This year we meet under very different conditions. The climate of uncertainty that has gripped the financial world continues to trouble people in Wall Street and Main Street,” he said.
“Fortunately, the governments at large have joined hands and are taking concrete steps to address the concerns and restore public confidence in the economic system. Every crisis is an opportunity, and this crisis has served us the opportunity to evaluate our business from a new perspective.”
Khoory reiterated the need for stronger corporate governance and honest cooperation, and organising business accordingly.
“We, in the Middle East, are not strangers to tough economic climates. We are part of a tough neigbourhood and yet we have taken the opportunities and invest in our future. That is why this conference is doubly important; we are not only meeting to discuss industry specific issues, but the deliberations will also have a direct impact on the regional economy,” he said.
Adding to the proceedings, His Highness Sheikh Ahmed bin Saeed Al Maktoum, president of the Department of Dubai Civil Aviation, and chairman and chief executive of Emirates Group, also wished to emphasise the importance of using initiative to help the region and the industry survive the turbulent period.
“How does the financial crisis affect an oil and gas industry? Demand falls, projects are postponed or cancelled, and prices fall with every confidence damaging whisper”, said Al Maktoum.
“What can we do? We must not drift and let it carry us along, as this will make matters worse. What we must do is always seek to use our initiative by careful preparation and awareness. Plans will be trimmed, core forces maintained and preparations made for the eventual uptake in demand and price.”
The final contribution at the opening of the MPGC conference came from the UAE Minister of Energy, His Excellency Mohamed bin Dhaen Al Hamli, who sighted the recent G20 meeting in London as a possible start to reigniting confidence in the global economy.
“Governments and financial institutions have been working hard to restore the global economy, and I’m confident that once the storm is over we will have a more balanced and sustainable global economy” commented Al Hamli.
“The G20 meeting in London earlier this month saw some breakthrough is the global dialogue as we try to tackle the biggest economic crisis since the great depression of the 1930s. We are now waiting to see how successful this meeting was in restoring confidence in the economy and financial institutions.”
He pointed out that the UAE remains in the top 10 for both oil and natural gas reserves, yet is outside the top 10 for production, meaning there is still much potential for developing the country’s resources.
“Heavy demand for fossil fuels will remain while oil is the pre-dominant source of energy, and gas and renewables will continue to increase their share of the energy market,” he said.
