According to a report published by DNV GL, and based on a survey of more than 430 oil and gas professionals and interviews with industry executives, 89% of senior oil and gas professionals in Asia Pacific are confident about the industry outlook for 2014.
However, only 22% of operators in Asia Pacific believe that they are on track to meet their targets this year. As a result, capital expenditure is being reigned in, and operators are coming under increasing pressure to extend the life of existing assets and increase the return on these investments.
Richard Bailey, Divisional Director in Asia Pacific for DNV GL, commented: ‘Our research shows that spiraling costs, coupled with a growing shortage of skilled oil and gas professionals, are causing industry leaders to re-evaluate their capital spending plans and take a narrower strategic focus in the year ahead’.
‘The pressure will be on suppliers to innovate to reduce costs and show value through providing access to scarce, in-demand skills and by demonstrating real quality in the products and services they deliver’, he said.
Approximately 70% of respondents plan to increase pressure on suppliers to curb costs. Many will seek to rely on bigger chain supply partners that are more capable of providing consistent global service. 22% of respondents said that their company would increase its partnership with larger partners, compared with only 6% two years ago.
Skills shortages were cited as another barrier to growth by 40% of respondents. Approximately 25% expect to struggle to find sufficient qualified external partners to achieve their objective in 2014.
Despite these challenges, the Asia Pacific region is still considered to offer some of the most favourable conditions for investment during 2014. Australia 9%), Malaysia (6%), and China (5%) feature within the top five destinations, after the USA (22%) and Brazil (9%).
Adapted from a press release by Emma McAleavey.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/20012014/confidence_among_asia_pacific_industry_professionals74/