S03 ORME 8 2021 News B_Layout 1 13/12/2021 08:44 Page 9
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Omicron could cost oil demand almost three million bpd in Q1 2022 THE OMICRON VARIANT of Covid-19 could cost the global oil market as much as 2.9mn barrels per day (bpd) of demand in the first quarter of 2022, bringing total expected demand down from 98.6mn bpd to 95.7mn bpd, if it triggers more lockdowns or restrictions, according to Rystad Energy. If the variant spreads rapidly, causing a rise in Covid cases and the reintroduction of lockdowns, Rystad Energy predicts that oil
Middle East energy professionals seek improved reward packages
demand could fall from an expected 99.1mn bpd to 97.8mn bpd in December 2021 alone – a drop of 1.3mn bpd. Demand could tumble further in January 2022, shedding 4.2 mn bpd to a level of 94.2mn bpd. As countries and governments learn to live with Omicron, or vaccine manufacturers adapt existing shots to counter the variant, the fullyear impact will likely be less severe. Average 2022 demand would fall to 98mn bpd, a drop
of 2.1mn bpd against Rystad’s current base case – or ‘mean’ – scenario. In late November, oil demand growth was so strong that even a co-ordinated strategic petroleum reserve release from major oilimporting countries did nothing to quell bullishness surrounding oil prices. However, after governments went on high alert, the price of oil later collapsed by more than 10% as the demand downside is vastly different.
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Image credit: Oilandgasjobsearch.com
ALMOST HALF OF all energy workers in the Middle East are considering leaving the energy industry within the next five years, according to research from the global energy recruitment specialists Oilandgasjobsearch.com and Brunel.
Retaining existing skillsets has never been so important given the impact the pandemic has had on the energy workforce.
In a survey of nearly 17,000 energy professionals worldwide, 47% of respondents in the Middle East said they were thinking about moving out of the industry. This was the highest figure in the world and contrasts with a global average of 43%. A further 22% of Middle East energy professionals said they were unsure about whether they wished to remain in the industry. Among workers in the Middle East, the most common reason for planning to leave the sector was low salary, mentioned by 31% of respondents. This was followed by lack of good benefits – 25% – and personal lifestyle changes, cited by 22%. As a global comparison, low salary was raised as a key issue by 25% of workers who were planning to exit from the industry. Personal lifestyle changes were also mentioned by 25% of respondents. Lack of good benefits, mentioned in 22% of responses, was the third-most common reason for workers worldwide to be considering their futures within the industry. Addressing recruitment challenges, 42% of recruiter responses from the Middle East identified inadequate succession planning for knowledge transfer as the key driver of skills shortages. Issue 8 2021
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