IDC Predicts Oil and Gas Industry Growth, Expects High Oil Prices to Boost Investment in Unconventional and Renewable Energy Sources
Dubai, February 23, 2012 – In its top 10 predictions for the Middle East and Africa oil and gas industry in 2012, international market research and advisory company IDC forecasts that oil prices will grow steadily this year, reaching about $130 per barrel. This will encourage entities in the oil and gas sector to increasingly invest into unconventional resources, including oil sands, extra heavy oil, biofuels, and shale oils, the production of which grew 4.5% year on year in 2011.
"Reserves are finite, the commodity is becoming scarcer, and the peak oil theory is gaining more supporters within the industry," says Senior Research Analyst Lamia Lafdil, IDC Energy Insights. "In addition, countries like China and India are creating more demand as they develop extremely rapidly. Even though renewable energy has enjoyed solid growth, most countries will still rely on oil for their energy needs."
The global economy, and with it the oil and gas industry, is still recovering from the recession of 2008–2009, and the strength of the rebound varies from one continent to another. While the economies of the U.S. and Europe remain fragile, developing Asian economies have been bouncing back strongly. Oil demand has risen in emerging economies, and it is forecast that global demand will be driven by these markets in the near future.
"The oil and gas industry has faced a number of challenges over the last few years, including a global recession and supply disruptions caused by the Arab Spring. However, it seems that the worst is over," says Lamia Lafdil. "The industry is marching towards years of growth, both in demand and supply, and will be characterized by huge investments in technology, especially in the smart field area." No it’s a well known concept.
The full list of IDC Energy Insights Top 10 predictions for the Middle East and Africa oil and gas sector in 2012 is as follows:
- Prediction#1: Tighter oil supply and rising demand from developing countries will cause prices to increase to more than $100 a barrel.
- Prediction#2: As more Middle East oilfields mature, oil companies will opt for enhanced oil recovery (EOR) in order to increase the lifetime of their fields.
- Prediction#3: Due to high oil prices, more investment will be made in unconventional and renewable energy sources.
- Prediction#4: Middle East offshore oil and gas exploration will gain importance, with CAPEX of more than $15 billion for the year.
- Prediction#5: Collaboration will be key to success in digital oil field (DOF) implementation.
- Prediction#6: Business performance management will be the cornerstone of a very volatile market.
- Prediction#7: The future of oil and gas technology lies within the cloud.
- Prediction#8: Smart drilling and production will play a key role in the smart oilfield.
- Prediction#9: High-performance computing will help companies to improve their recovery rates, mainly due to better reservoir management and production optimization.
- Prediction#10: IT spending growth will be driven by emerging economies.
IDC Energy Insights' Middle East and Africa Oil and Gas Industry 2012 Top 10 Predictions (IDC #ZEI01U) report provides the top 10 predictions for the Middle East and Africa oil and gas industry in 2012. It provides general predictions regarding oil demand and price forecasts, as well as technology predictions for oil and gas, such as the future of cloud technology, smart computing, and the smart field. These predictions will help vendors better understand the dynamics of the oil and gas environment in 2012, as well as providing valuable insight for oil and gas companies planning to make new investments in technology.
For more information about this study or other IDC Energy Insights research, please contact Lamia Ladfil, senior research analyst, Energy Insights, IDC Middle East, Africa, and Turkey at email@example.com, +971 4 446 4956.
For more information, please contact:Vladimir Tax
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