PARTING SHOT
FUELLING THE FUTURE
Digitalisation could unlock up to $2.6tn in oil and gas sector, says DHL
A
fter crunching the numbers, DHL Global Forwarding has calculated that digitalisation of oil and gas (O&G) in the Middle East and Africa should continue to play a significant role in transforming the industry, “potentially unlocking $1.6 trillion to $2.6 trillion by 2025”. The air, ocean and road freight specialist’s latest whitepaper analyses current trends in the region and predicts that companies will leverage “digitalisation to improve margins, safety standards, as well as reduce emissions and water consumption”. On the downside, the whitepaper also suggests that global oil demand will not reach pre-COVID-19 levels before the end of 2021. “O&G companies in the Middle East and Africa region (MEA) need to take bold decisions to quickly reposition themselves, including
redefining partnerships across the supply value chain, building resilience and going digital. For example, drones and autonomous robots can potentially reduce drilling and completion costs by 20% in deep-water areas and 25% in inspection and maintenance of assets,” says DHL. DHL notes that increased investment in downstream projects will generate more value per barrel of oil through production of value-added specialty chemicals and plastics. Over half of the global oil demand growth by 2025 is expected to come from the petrochemical industry – “and this is evident in the region where national oil companies are already partnering with key players across key demand markets; for instance Saudi Aramco’s non-binding deal for 20% stake in Reliance’s crude oil-to-chemical (COTC) operations”. “The energy sector is grappling with multiple challenges due to the pandemic but it is not all
doom and gloom however,” said Amadou Diallo, CEO, DHL Global Forwarding Middle East and Africa. “Whilst it is more critical than ever to ensure the smooth completion of projects, it is equally pertinent that energy companies leverage technology to offer smarter, simplified and greener solutions. To that end, DHL has implemented best-in-class logistics solutions for leading energy companies, such as TOTAL, to collectively tackle technological, digital and climate challenges.” Diallo added: “To stay relevant in a dynamic market, energy companies have to adapt and embrace new business models, which will allow them not only to participate but also to lead the global transition towards green energy. At DHL, we continue to work closely with our customers to optimise their complex supply chains and manage logistics costs better, so energy companies can focus on their core activities.”
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32 FEBRUARY 2021
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