The critical need for skilled people is a key issue for Saudi Arabia and the industry in general, says Warren W. Wilder, Saudi Aramco executive director of Chemicals, in his presentation at the 2014 IHS World Petrochemical Conference.
Warren W. Wilder, Saudi Aramco executive director of Chemicals, served as a featured speaker on a panel discussing the global energy outlook. His presentation, “Mideast: Evolution of Growth Strategies toward Differentiation,” was part of the 2014 IHS World Petrochemical Conference with a theme that posed this question: “The Impact of the Next Capital Cycle on Global Chemical Markets: Can the New World Order in Energy and Chemicals be Sustained?”
In his remarks, Wilder pointed to Saudi Arabia’s culture and policies as enabling the Kingdom’s rapidly transforming chemicals industry. He noted that Saudi Aramco is facilitating the development of a robust chemicals industry by building conversion parks alongside domestic production facilities.
“Despite changes, certain fundamentals still apply: Saudi Aramco has an 80-plus year history of reliable crude oil supply and will continue to be a reliable supplier,” Wilder said as he described the rapid changes in the industry landscape.
One of the most important points highlighted by Wilder is the critical need for people: “One of the key issues for Saudi Arabia and the industry in general is skills. The greatest shortage we are facing is not capital or feedstock; it is skills,” he said, emphasizing the need for strong cooperation between public and private sectors, and describing the educational opportunities in Saudi Arabia with a robust curriculum in science, technology, engineering and math (referred to as STEM subjects), as well as statistics.
Another key enabler that will help in the future growth of the (chemicals) industry is the huge public investment in infrastructure through the Public Investment Fund (PIF), Wilder said. In addition to this fund, support can be found from local entrepreneurial, vocational and development organizations such as Wa’ed, Saudi Arabian General Investment Authority (SAGIA), KAUST, Dhahran Techno Valley, KFUPM and the Royal Commission for Jubail and Yanbu’ (RCJY).
Also crucial for success in chemicals is technology. Saudi Aramco is expanding its Research & Development (R&D) program with research centers around the world, including a trio of R&D centers opening in the U.S.
“The industry in Saudi Arabia is transforming from a commodity-based (chemicals) business toward far more value-added products and chemistry,” he said. “In addition to the anticipated increase in global capacity and growth, there is a shift to heavier feedstock and the creation of more value-added opportunities.”
Looking at the industry landscape, Wilder said that Saudi Arabia will continue to be the largest Gulf Cooperation Council (GCC) chemicals producer.
Wilder described the rapid transformation in the GCC and the changing landscape in the industry that are part of the impetus behind Saudi Aramco’s investment in a massive chemicals program, including Sadara, currently underway, and Petro Rabigh, with an expansion underway.
