The President and CEO of EQUATE, Mohammad Husain, has claimed that Gulf Cooperation Council (GCC) states must increase their investment in value-added oil and gas processing to support sustainable, long-term economic growth.
Speaking during preparations for the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), Mr Husain said better integration of upstream, midstream and downstream sectors of the industry must be a priority for national oil companies (NOCs) in order to ensure that countries with significant oil reserves continued to receive the greatest possible benefit from their natural resource.
Mr Husain said: “Historically, downstream industries in the Gulf have been relatively underdeveloped […] Exports from the region itself were generally as crude oil, with value adding taking place outside the regional economy. However, over the last two decades, the region has emerged as a global hub for the production of chemicals and petrochemicals, and the industry has been on a consistent and exponential expansion drive, growing at an average compound annual growth rate of 12%.
“As the global market for oil, gas and petrochemicals further evolves, we need to bring more of the processed value of petroleum products within our own economy as means for greater diversification and industrial presence. This has become a high priority for Gulf NOCs.”
This year, ADIPEC 2017 will include dedicated conference and exhibition sections for downstream industries, reflecting their increasing strategic importance to Middle East NOCs wanting to maximise income across the value chain.
“The expansion of ADIPEC to include the downstream sector is very welcome,” said Husain. “Countries in this region face very similar challenges, and we must work together in partnership to ensure that our hydrocarbon wealth creates sustainable social and economic benefits for future generations.”
ADIPEC will be held at Abu Dhabi National Exhibition Centre from 13 - 16 November 2017.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/07112017/gcc-states-must-add-value-to-their-oil-wealth/