Senior oil and gas professionals in the Middle East and North Africa (MENA) are optimistic about the sector’s growth in 2019, according to new research by DNV GL. In its A test of resilience report, it noted that 83% of MENA professionals surveyed expressed confidence in the industry’s growth for the year, compared to 63% last year and to 76% globally now.
The research is based on a global survey of nearly 800 senior and gas professionals, as well as in-depth interviews with industry leaders.
MENA respondents’ optimism concerning overall prospects for their own organizations in 2019 has also risen over the past year, from 78% to 85%, and is second only to China (92%). As confidence grows, 83% in MENA predict their companies will increase or maintain capital expenditure in 2019, the highest such level of confidence among regions in DNV GL’s analysis. Nearly two thirds (62%) in MENA believe their organizations will favour projects that are adaptable within shorter time-frames.
“It is quite a dramatic step up if you look at the data,” says Ben Oudman, regional manager for Continental Europe, the Middle East, East Africa and India at DNV GL – Oil & Gas. “Confidence is back at levels like in 2010, 2011 and 2012, the heady days when oil prices were $120 per barrel. As companies have been successful at driving down costs, they can live with an oil price sitting around the $60 space, and they have made themselves much more robust to deal with fluctuation in oil price.”
More than half (53%) of the region’s senior oil and gas professionals now agree that companies will be able to achieve high profitability in the next decade, well up on the 39% who thought so in 2018. In addition, cost controls remain firmly in place: 89% expect them to increase or stay the same this year, compared to 82% last year.
