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oilandgasmiddleeast.com AUGUST 2019
EDITOR’S LETTER
W
riting about
Saudi Ara-
mco’s $18bn
contracts to redevelop
Marjan and Berri fields
brought to mind a com-
ment from one reader
who, after reading the
July editor’s letter on
industry transforma-
tion, wondered if sus-
tainability measures would primarily be
undertaken by larger companies, while
smaller ones across the sector might
struggle to implement changes, and con-
tinue to operate under the status quo.
It is a fair point; while it is quite sim-
ple to suggest that companies become
more efficient and reduce carbon emis-
sions, it requires a significant investment
into upgrading facilities, developing new
technologies, and, crucially, changing
the mindset and culture of the company.
The last point is imperative for any
transformation, be it digital, environ-
mental or otherwise. A company is, fun-
damentally, a group of people working
together. Whether their efforts collec-
tively result in the production of hydro-
carbons, equipment, or the delivery of
necessary services, they share a common
goal. When the means to a company’s
goals shift, employees have to adjust. A
strong leader makes that shift as natural
as possible, and facilitates the employ-
ees’ “buy in” to the new paradigm.
It is something that most oil and gas
companies have had to contend with,
given the fickle nature of the sector. One
example is ADNOC Group, whose CEO
Sultan Al Jaber has been vocal about
industry transformation and the impor-
tance of digital technology since he took
the helm in 2016.
The industry-wide drive for sustainability, digitalisation and
shifting strategies are opportunities for disruption
Industry transformation:
Obstacle or opportunity?
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Business titles, go to: http://www.itp.com/subscriptions.In a March 2019 interview with Oil &
Gas Middle East about ADNOC’s block-
chain platform, the firm’s digital opera-
tions manager Ali Alshehhi said that
technology is the easy part of digitally
transforming the company, but “the pace
of change is so fast and without a strong
buy-in from the organisation, at all lev-
els, that change will not be possible.”
But for a smaller company fighting
for market share, taking a long-term
view in this economic climate might
seem difficult, and the point moot; if
it does not focus on getting orders in,
rather than spending time, money and
effort on extensive research & develop-
ment, and new technologies, it might not
survive long enough to reap the benefits
of these efforts.
However, on the other end of Saudi
Aramco’s $18bn contracts are companies
receiving that money to help it rede-
velop it assets and reduce the carbon
intensity of its products. Every situation
that presents a struggle to the industry
also provides an opportunity to those in
the right place, in the right time, with
the right plan.
The oil price crash was nothing short
of a crisis, but it birthed an era of in-
novation that has seen new techniques,
strategies and technologies, digital and
otherwise, come to the forefront of the
industry. Similarly, any large industry
change, like the shift to more sustainable
practices, digital technology, natural gas,
among others, present small businesses
with opportunities to disrupt the way
the industry runs, if only they reach out
and grab it.
Carla Sertin
Editor
Oil & Gas Middle EastPO Box 500024, Dubai, UAE
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the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review.Published by and © 2019 ITP MEDIA Group FZ-LLC.THIS ISSUE:
A Q&A with the
CEO of Mubadala’s
petroleum and
petrochemicals
unit (p12).