New base 752 special 21 december 2015

Copyright © 2015 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
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NewBase 21 December 2015 - Issue No. 752 Edited & Produced by: Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Siberian Surprise: Russian Oil Patch Just Keeps Pumping
Bloomberg - Stephen Bierman
In the fight for market share among the world’s oil producers this year, Russia wasn’t supposed to
be a contender. But the world’s No. 3 producer has been pumping at the fastest pace since the
collapse of the Soviet Union, adding to the flood on an already-swamped market and helping push
prices to the lowest levels since 2009.
Russia’s unexpected oil bounty this year is the result not of a new Kremlin campaign but of
dozens of modest productivity improvements across the sprawling sector. Even pressured by
plunging prices, as well as U.S. and European Union sanctions that cut access to much foreign
financing and technology, Russian companies have managed to squeeze more crude out of some
of the country’s oldest fields. They have also brought new projects on line, offsetting steady
declines in its core producing region of West Siberia.
With a rise of 0.5 percent in the first nine months of 2015, Russia hasn’t boosted production as
much as its larger rivals, the U.S. (up 1.3 percent) and Saudi Arabia (up 5.8 percent), according to
Citigroup Inc. But having ignored OPEC’s calls earlier this year to join efforts to support prices by
pumping less, Russia is keeping up with the cartel.

“I know of no one who had predicted that Russian production would rise in 2015, let alone to new
record levels,” said Edward Morse, Citigroup’s global head of commodities research. As recently
as April, not even the Russian government thought 2015 would break the record.
Bashneft’s Boom
But Mikhail Stavskiy said he wasn’t surprised.
A veteran of the oilfields of Siberia who’s now head of upstream at Bashneft PJSC, he said his
engineers have managed to find more oil in some of the fields where he worked summers as a
student in the early 1980s. Bashneft, with some of the oldest reserves in Russia, has been the
biggest single contributor to increased crude output this year, thanks largely to low-cost efforts to
squeeze more oil out of regions that have been in production for decades. The results have
helped make Bashneft’s shares among the best performers on Russia’s stock market in the last
12 months.
The other big boosts to Russian production this year have come from a few mid-sized new fields
like those of Severenergia in the Arctic Yamal region. Co-owners Novatek OJSC and
Gazpromneft PJSC invested in the $9.2 billion project back when oil prices were high. With most
of the capital already committed, operating costs now are relatively low and output of gas
condensate, a light and especially valuable form of crude, is up five-fold this year.
One side effect of falling oil prices -- the 52 percent plunge in the ruble over the last two years --
has helped Russian oil producers, chopping their costs in dollar terms since between 80 and 90
percent of their spending comes in rubles.
“I don’t know what the oil price would have to fall to for things to change dramatically,” Stavskiy
said. “We’ve been through $9 a barrel and production continued, so if something like that
happens, we know what to do.”
Sustainability Doubts
To be sure, few in the industry expect Russia to be able to sustain the current performance for
more than a few years. Tax hikes and lack of financing have cut deeply into exploration drilling,
which is down 21 percent this year, and handicap the larger new projects that are needed to
replace the country’s older fields as they run dry.

“There is, however, only so far such efficiency gains can go and we are probably near the peak of
output today,” said Chris Weafer, a partner at consultants Macro Advisory.
In some parts of the Russian oil patch, low prices are already causing pain. At $40 a barrel, “half
of our fields could be stopped. Heavy oil, low horizons, mature horizons are all unprofitable at a
price of $40-45. We are waiting for better times,” Russneft OJSC Board Chairman Mikhail
Gutseriev said in an interview on state television early this month.
Relatively high taxes on oil have actually sheltered the industry from much of the impact of the
drop in prices. The government takes nearly on crude exports everything above $30-$40 a barrel,
so companies don’t feel much impact until prices fall below that. Stavskiy’s Bashneft also
benefited from some special tax breaks for older fields, although he said the savings wasn’t
decisive for the company’s investment choices.
“We’re up 3 percent since the beginning of the year at our mature fields in Bashkiria, the oldest of
which has been in production for 83 years and already produced 1.7 billion tons (12.5 billion
barrels) of oil,” Stavskiy said.
Soviet Legacy
Bashneft and other Russian companies working fields in the Volga River basin -- some of the first
to be discovered in Russia early in the last century -- are benefiting from Soviet inefficiency, he
said. “In Soviet times, the idea was: whatever we don’t produce will be left for our children.”
As a result, many old fields still have plenty of untouched oil. Bashneft, working with Schlumberger
Ltd., set up a high-tech geology center in its headquarters near the fields, allowing engineers to
model deposits in real time and drillers to target where the remaining oil is.
That’s allowed Bashneft to increase production at new wells by as much as 20 times compared to
past efforts, Stavskiy said. Custom-designed pumps -- made locally and thus not affected by
sanctions -- help draw oil out of narrow holes, he added.
Every month, the company ranks
potential drilling and other projects by the
minimum oil price needed to make them
profitable. Only the above-water ones
make the grade, a kind of flexibility and
discipline typically associated with
western companies.
More Drilling. Across the industry,
companies have boosted production
drilling to increase output. While the
country’s biggest west Siberian fields are
showing declines, smaller new projects
have more than offset them this year.
Gainers include Irkutsk Oil Co. in Siberia and Exxon Mobil Corp.-led Sakhalin-1 in the Sea of
Okhotsk. In the Arctic, Novatek started production at the Yarudeyskoye oil field this month. The
field will “rapidly reach” planned output of about 70,000 barrels a day, the company said early this
month.
Though only about 0.7 percent of total Russian oil output, that gain is likely to be enough to keep
the record pace going, said Alexander Nazarov, an oil and gas analyst at Gazprombank. “We may
finish the year with another high,” he said.

Saudi Crude Exports Rose in October to Most in Four Months
Bloomberg - Bruce Stanley
Saudi Arabia boosted crude exports in October to the highest level in four months, as the world’s
biggest oil exporter added barrels to a worldwide supply glut that has contributed to a slump in
prices.
Saudi shipments rose to 7.364 million barrels a day in the month from 7.111 million in September,
according to the latest figures from the Joint Organisations Data Initiative. The monthly exports
were the most since June and 7 percent higher than in October 2014, the data released on
Sunday showed. JODI is an industry group supervised by the Riyadh-based International Energy
Forum.
Saudi Arabia produced 10.28 million barrels a day in October, up from 10.23 million in September,
the JODI figures showed.
Saudi Arabia
led OPEC to decide on
Dec. 4 to abandon the
group’s limits on output
amid efforts to squeeze
higher-cost producers
such as Russia and
U.S. shale drillers out of
the market. The
Organization of
Petroleum Exporting
Countries had set a
production target
almost without
interruption since 1982, though member countries often ignored and pumped well above it. The
oversupply has pushed the price of benchmark Brent crude to almost a seven-year low and
triggered the worst slump in the energy industry since the 2008 global financial crisis.
Brent for February settlement dropped 18 cents, or 0.5 percent, on Friday to $36.88 a barrel on
the London-based ICE Futures Europe exchange. The crude grade has tumbled 36 percent this
year.
Saudi Arabia pumped 10.33 million barrels a day in November, exceeding 10 million barrels in
daily output for the ninth consecutive month, according to data compiled by Bloomberg. The
Saudis have stuck to their one-year-old view that any output cuts won’t succeed in supporting
prices unless big producers outside OPEC, including Russia and Mexico, also participate.
Crude exports fell in October from Iraq and Kuwait, OPEC’s second- and fourth-biggest
producers, respectively, according to JODI. Iraq shipped 2.708 million barrels a day, down from
3.052 million barrels a day in September for the country’s fourth consecutive monthly decline, the
data showed. Kuwait’s exports dropped to 1.905 million barrels a day in October from 2.008
million in the previous month, JODI said.
Iran, the fifth-biggest supplier in OPEC, exported 1.395 million barrels a day of crude in October, a
marginal increase from 1.39 million in September, JODI figures showed.

GE Oil & Gas wins PDO compressor supply deals
Oman Observer
By Business Reporter — MUSCAT: Dec 20: GE Oil & Gas has won two contracts from Petroleum
Development Oman (PDO) for the supply, testing, installation and commissioning of a fleet of
electric motor driven centrifugal compressors to be deployed across PDO’s Saih Nihayda
Depletion Compression Phase II,
Kawther Depletion Compression
Phase II, Yibal Khuff Depletion,
Burhaan West and Fahud Gaslift
Compression projects. The
contract also covers the
aftermarket services for these new
compressors as well as the
existing GE compressor fleet.
The contracts were signed at the
recent Business Opportunities
Forum held under the auspices of
His Highness Sayyid Haitham bin
Tareq al Said, and organised by
the Oman Chamber of Commerce
and Industry to promote the efforts
and programmes of the private
sector in the field of In-Country
Value creation.
In addition, GE Oil & Gas also
signed an agreement with PDO to
extend training and development
support for Omani nationals over
the next 10 years, underlining its
commitment to localisation and the development of human capital in Oman. PDO Managing
Director Raoul Restucci said: “We are making significant investments in strengthening our
infrastructure that will enhance our productivity and help create new jobs for Omani nationals. In
addition, we are focusing on strengthening local supply chain and maintenance capabilities that
support Omani talent development. The contracts with GE Oil & Gas, a long-term partner of PDO,
will add significant value to the national economy.”
Rami Qasem, President & CEO, GE Oil & Gas Middle East, North Africa and Turkey, said: “Oman
is one of the strategic growth hubs for GE Oil & Gas in the Middle East where we have achieved
over 90 per cent Omanisation. The new contracts build on our commitment to deliver cutting edge
technology, support localised innovation and promote talent development in Oman — a key
element of how GE does business in the region.”
As Oman focuses on projects to enhance oil and gas production, GE Oil & Gas is investing in its
partnership with PDO by offering advanced technology and local services capability in-country.
GE Oil & Gas has also rolled out dedicated training programmes for Omani nationals at the
Florence Oil & Gas University, a proof-point of ongoing support of Omanisation and human capital
development. GE has also acquired land in Nizwa to develop a workshop for local repairs and
services to strengthen its local capabilities.

Qatar: RasGas awards Chiyoda Almana long-term EPCm services contract
Gulf times
Chiyoda Almana Engineering LLC (Chiyoda Almana), a leading engineering and construction
contractor in Qatar, has been awarded the long-term engineering, procurement and construction
management (EPCm) services contract by RasGas.
Chiyoda Almana will provide EPCm services required for projects that support the operations of
RasGas onshore and offshore facilities. The five-year contract will cover small to medium-sized
projects for a total of seven liquefied natural gas (LNG) plants and three large-sized gas
processing plants, helium
plants and other facilities
operated by RasGas at Ras
Laffan.
At the contract signing
ceremony, RasGas chief
executive officer Hamad
Mubarak al-Muhannadi said,
“With the signing of this new
five-year term contract, we
hope to ensure continued
efficiency in completing
ongoing projects,
maintaining the highest
safety standards and
drawing on the benefits of
Chiyoda Almana’s familiarity
with our operating assets
and brownfield execution capability developed during the previous EPCm contract.
“As a world-class supplier of energy, RasGas is committed to deliver the best results in
operational excellence. This commitment to quality has also been reflected in selecting the most
capable contractors and establishing pre-eminent partnerships, which have made a significant
contribution towards adding values to our work culture by fulfilling cost and performance targets,”
he added.
Mamoru Nakano, operation director (Gas & LNG Project Operations 1) and senior vice-president,
Chiyoda Corporation, said: “Chiyoda Almana has a strong business relationship with RasGas, and
we are so honoured to be awarded the RasGas long term EPCm services contract, which will
definitely strengthen these business ties.
“We are looking forward to complete the newly awarded contract in the same manner as for
previously completed long term EPCm contract and with the priority in terms of safety
performance, quality of our personnel and our record of reliable delivery.”

Afghanstan: President Discusses TAPI Project With Tribal Leaders
TOLO news + NewBase ( images )
Afghan President Ashraf Ghani Sunday talked about the importance of Turkmenistan-Afghanistan-
Pakistan-India (TAPI) to a gathering of tribal elders, reported TOLOnews. While addressing the
gathering Ghani said, “The country supports regional and
international projects so as to ensure positive change. More
positive changes will arrive in the months ahead."
The much delayed TAPI gas pipeline project was formally
inaugurated last Sunday, December 13, 2015. The ground
breaking ceremony, which was held in Mary in the
southeastern part of Turkmenistan, was attended by Afghan
President Ashraf Ghani along with Turkmenistan President
Gurbanguly Berdymuhamedov, Pakistan Prime Minister Nawaz Sharif and Indian Vice President
Muhammad Hamid Ansari.
He said that besides
TAPI being of enormous
economic importance,
the project is also a step
forward to change
Afghanistan into an
economic hub in the
region, TOLOnews
reported.
Experts believe that for
the project to be
successful, security of
the pipeline would be
very important,
especially in
Afghanistan and
Pakistan. Islamabad has
already indicated that it
is willing to talk to
Taliban about the
project.
Nearly 200 kilometers of
the pipeline will pass
through the territory of
Turkmenistan, 735
kilometers through
Afghanistan, 800
kilometers through
Pakistan and will reach Fazilka in India. The pipeline will export up to 33 billion cubic meters of
natural gas a year from Turkmenistan to Afghanistan, Pakistan, and India over 30 years.

US:Removal of US crude export ban to secure new investments for shale
Gulf News - Alexander Cornwell, Staff Reporter
United States shale oil is likely to find new appetite from investors now that the government is set
to lift a four-decade ban on oil exports.
Shale producers have increasingly come under pressure this year as low oil prices turned their
once highly profitable but capital intensive operations into loss-making ventures. The number of
operational rigs in the US have fallen and interest in investment in the shale oil industry, which has
a higher operational cost than traditional oil drilling operations, dropped.
But on December 16, congressional leaders in the US agreed to lift the ban, which dates back to
the 1970s, in a step that will to give the industry opportunities for new, long-term investment.
“Lifting the ban removes a significant threat to shale oil company investment down the road, by
allowing production companies to sell their crude at competitive prices,” Bob McNally, a former
energy adviser to the George W. Bush administration, told Gulf News.
Shwan Zulal, an associate fellow at Kings College in London and director of Carduchi Consulting,
told Gulf News it is “great news” for shale producers.
Viability
US shale boomed over the past seven and half years, largely in the Midwest state of North
Dakota, until oil prices fell to below $60 (Dh220) a barrel in January this year from a high of $115
a barrel in June 2014.
The oil price crash raised questions over the viability of US shale, which helped the US to become
the world’s third largest producer after Russia and Saudi Arabia.

In January 2015, North Dakota Congressman Kevin Cramer, who favours lifting the ban, told Gulf
News the longer oil stayed low, the more likely the ban will be lifted.
“We are not going to be the price taker anymore, we’re going to be the price maker,” he said at the
time.
Lifting the prohibition on exports “will stop a big differential opening up between US and
international prices,” Robin Mills, head of research at Manaar Energy in Dubai, told Gulf News.
“Longer term it will help support US shale production if global prices recover somewhat.”
US crude West Texas Intermediate and global benchmark Brent crude are trading at near parity
and on Friday US crude traded at $34.55 a barrel on Friday, while Brent traded at $36.88 a barrel.
Saudi strategy
On December 15, the International Monetary Fund Middle East Director Massood Ahmad said the
fund sees oil slowly climbing over the next five years to $60 a barrel in 2020.
Lifting the ban is not going to have a “big impact” on prices, Mills said, and so will mean little for
Saudi Arabia’s strategy of pursuing market share over high prices. Asian markets, buyers of
Middle East oil, are also unlikely to start buying US crude given the near parity with Brent and high
transport costs to ship from the US.
For the shale producers, buyers are most likely to be “European, Caribbean and South American;
simple refiners optimised to run light crude,” McNally said.
Exports to Mexico and Canada, which were permitted under the ban, are also likely to increase by
some degree.

NewBase 21 December - 2015 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Brent crude at 2008 low as market rout heads into Christmas
Reuters + Newbase
Brent crude prices fell on Monday to their lowest since 2008 on renewed worries over a global oil
glut, with production around the world remaining at or near record highs and new supplies looming
from Iran and the United States.
Brent futures fell as low as $36.32 per barrel in overnight trading around 0000 GMT, the weakest
since 2008, before edging back to $36.49 per barrel by 0203 GMT.
U.S. West Texas Intermediate (WTI) futures were down 20 cents at $34.53 per barrel and close to
last Friday's 2015 lows. Both benchmarks are down more than two-thirds since mid-2014 when
the rout began.
Analysts said a strong dollar following last week's U.S. interest rate hike, which makes oil
consumption more expensive for countries using different currencies, as well as a renewed
increase in U.S. oil rig counts were weighing on crude prices.
Oil price special
coverage

"The U.S. oil rig count bounced back this week, up by 17 (to 541), putting an end to four
consecutive weekly declines," Goldman Sachs said.
"The increase in rig count even in a low crude oil price environment suggests shale producers are
committed to maintaining production levels. The resilient production data reflect rising U.S. crude
stockpiles, which have surged to 491 million barrels, the most for this time of year since 1930,"
ANZ bank said.
The U.S. glut adds to global oversupply as the main producers, including Russia and the
Organization of the Petroleum Exporting Countries (OPEC), pump hundreds of thousands of
crude every day in excess of demand.
Russian production has surpassed 10 million barrels per day (bpd), its highest since the collapse
of the Soviet Union while OPEC output also remains near record levels above 31.5 million bpd.
Adding to the existing glut is that new oil is likely to become available soon, with Iran hoping to
ramp up sales in early 2016 once sanctions against Tehran are lifted.
Iran will export most of its enriched uranium to Russia in coming days as it rushes to implement a
nuclear deal and secure relief from international sanctions, Tehran's nuclear chief was quoted as
saying over the weekend.
This comes only days after the U.S. voted to lift a 40-year-old ban on crude exports which could
see some of its excess production dumped on the global market.
On the demand side, there are also bearish factors as most of the northern hemisphere is
experiencing an unusually mild start to the winter due in part to the El Nino weather phenomenon,
denting heating oil demand.

Boom-bust cycle jerks reins out of Opec’s hands
The National + Robin Mills
From a low of US$9.10 per barrel in late 1998, oil prices escalated almost unrelentingly to $144 in
July 2008, crashed below $34 in December in the financial crisis, rebounded to $128 in March
2012 on Middle East geopolitical turmoil and have now slumped again to around $36.
During this period, Opec was allegedly managing the market. If this is stability, what would
instability look like?
A provocative new paper by Robert McNally of Columbia University argues that Opec’s market
management role did not end with the recent rise of US shale oil. He concludes that the
producers’ organisation has not effectively stabilised prices since 2004, except for a brief period
during the financial crisis.
The thesis draws together strands that have become increasingly clear. Saudi Arabia does not
have enough spare capacity to cap rising prices, in the event of disruption or unexpected demand
growth. And it has no intention of cutting its own production unilaterally (or with some limited
assistance from GCC allies), ceding market share to geopolitical rivals or non-Opec competitors.
It is not possible for prices to be high and stable, except during temporary periods when
disruptions are coincidentally matched by new supply, as in 2012 to the middle of last year. High
oil prices attract too much competition – within Opec, outside Opec and from efforts to reduce oil
dependency and improve efficiency. Saudi proclamations in September last year that “the high
cost of producing shale oil … means the price of oil will not go to less than $90” now appear wildly
optimistic.
It is possible for prices to be low and stable, as during the post-war period up to 1970, when US
regulators managed their domestic market and the international oil companies’ “Seven Sisters”
restrained low-cost output in the Middle East.
Prices were again low and fairly stable from 1986 to 1998, when vast Opec spare capacity
prevented any rally. Equilibrium was always vulnerable to any race by a low-cost producer for
market share, but sanctions and mismanagement in Iraq and Iran meant that only Venezuela tried
this strategy – with ruinous economic and political consequences.
Mr McNally now thinks we are back in the pre-war era of “boom and bust”, with wild oscillations in
price. That is possible, and over the next few years, we could sketch out three illustrative
scenarios.
In the first, the market will take a couple of years to digest the current swelling inventories and the
return of Iran. After that, the halt in investments in long lead-time, high-cost areas such as oil
sands and deepwater (and the Arctic, although its importance is exaggerated), the travails of Iraq
and the financial damage inflicted on shale oil companies would constrain output, and prices
would reascend towards the uplands of $100 per barrel.
In the second case, a rise in prices would quickly revive the shale oil companies, leading to
another surge in North American production. Volatility would remain, but the cycles would be
compressed, on the order of a year or less, perhaps superimposed on the industry’s traditional
decadal rhythm. Prices would fluctuate around the cost of the marginal shale producer – $65 per
barrel or so.

NewBase Special Coverage
News Agencies News Release 21 Dec.. 2015
What Just Happened in Solar Is a Bigger Deal Than Oil Exports: $73 billion in new
iBloomberg - Tom Randall
The clean-energy boom is about to be transformed. In a surprise move, U.S. lawmakers agreed
to extend tax credits for solar and wind for another five years. This will give an unprecedented
boost to the industry and change the course of deployment in the U.S.
The extension will add an extra 20 gigawatts of solar power—more than every panel ever installed
in the U.S. prior to 2015, according to Bloomberg New Energy Finance (BNEF). The U.S. was
already one of the world's biggest clean-energy investors. This deal is like adding another America
of solar power into the mix.
The wind credit will contribute another 19 gigawatts over five years. Combined, the extensions will
spur more than $73 billion of investment and supply enough electricity to power 8 million U.S.
homes, according to BNEF.
"This is massive," said Ethan Zindler, head of U.S. policy analysis at BNEF. In the short term, the
deal will speed up the shift from fossil fuels more than the global climate deal struck this month in
Paris and more than Barack Obama's Clean Power Plan that regulates coal plants, Zindler said.
Data Source: Bloomberg New Energy Finance
This is exactly the sort of bridge the industry needed. The costs of installing wind and solar power
have dropped precipitously—by more than 90 percent since the original tax credits took effect—
but in most places coal and natural gas are still cheaper than unsubsidized renewables. By the
time the new tax credit expires, solar and wind will be the cheapest forms of new electricity in
many states across the U.S.

The tax credits, valued at about $25 billion over five years, will drive $38 billion of investment in
solar and $35 billion in wind through 2021, according to BNEF. The scale of the new projects will
help push costs down further and will stimulate new investment that lasts beyond the extension of
the credits.
Few people in the industry expected a five-year extension. Stocks soared. SolarCity, the biggest
rooftop installer, surged 34 percent yesterday. SunEdison, the largest renewable-energy
developer, climbed 25 percent, and panelmaker SunPower increased 14 percent.
Congress is expected to vote by the end of this week on the tax credits as part of a broader
budget deal that also lifts the 40-year-old ban on U.S. oil exports. Oil producers have lobbied for
years to lift the ban, but it isn't likely to significantly affect either consumption of oil or deployment
of renewables. Leaders from both parties reached an agreement on the bill late Tuesday.
The 30 percent solar tax credit was set to expire next year and will now extend through 2019
before tapering to 10 percent in 2022. The wind credit had expired at the end of 2014, and the
extension will be retroactively applied from the start of 2015 through 2019, declining in value each
year.
Wind power has had an especially tumultuous relationship with U.S. lawmakers, who have kept
the industry's credits alive through a disruptive ping-pong game of short-term extensions every
year or two. "You open manufacturing plants and then you close them. And then you open them
and you close them," BNEF's Zindler said. "It's economically inefficient. This will give them a good
five-year line of sight on what the market will look like, and that's really important."

Innovation seen key to resilience for energy industry next year
The energy industry in GCC and elsewhere must commit to innovation in order to successfully
navigate a period of significant change and uncertainty in 2016, according to Booz Allen Hamilton.
Amid falling oil prices and new models of distributed power, oil producers and utilities need to
adapt and react to market changes to secure the viability of their businesses as the market
tightens.
The study, conducted in
collaboration with IDC, also
highlights the importance of
cyber security to the energy
industry, noting that it
expects up to 75% of
industry players to have a
full risk-based cybersecurity
strategy in place by 2019.
Booz Allen Hamilton says
that organisations will need
to identify and manage
threats well before they
have direct operational
effects.
The hydrocarbon industry is
a critical one in the GCC
(Gulf Cooperation Council), a region that accounts for nearly 40% of the world’s oil production.
According to the International Monetary Fund estimates, the market downturn will result in a
$287bn loss in oil exports or around 21% of the combined GDP for GCC suppliers, in 2015.
“The global oil industry is entering a critical period as it adjusts to the reality of sustained low oil
prices and no foreseeable return to a $100 dollar barrel of oil,” said Dr Walid Fayad, executive
vice president, Booz Allen Hamilton MENA. “As a region dependent on revenues from oil, this new
reality demands a response from GCC producers and exporters to create more resilient
businesses able to withstand the market volatility and continue to deliver on major domestic social
and infrastructure projects.”
Beyond driving down the net cost of oil production, the adoption and integration of technology can
also disrupt energy across the value chain, positively impacting utilities and power generators in
the region.
“Electricity demand growth of more than 8% a year presents the GCC with an energy security
challenge that threatens the continued economic development of the region,” said Dr Adham
Sleiman, vice-president, Booz Allen Hamilton MENA. “Technology will be critical to installing and
connecting the grid capacity the region requires whilst making the electricity system smarter, more
efficient and more secure.”
The report highlights five key trends for 2016. They are listed below.

Cybersecurity spending is set to rise, as threats will need to be identified and managed well before
they have a direct operational effect, replacing the traditional compliance-oriented approach to
cybersecurity.
There will be a spike in energy demand and associated infrastructure, mainly driven by emerging
economies. Innovation will rise correspondingly to meet the unique needs of these markets. The
International Energy Agency reports that emerging economies will account for more than 90% of
net energy demand growth by 2035.
Customer demand for information, service and control will drive digital transformation to touch
every aspect of the industry (e.g. information sharing, outage notification, bill payment, sale of
energy products and services, in connected-homes).
IDC Energy Insights reports that by 2018, 70% of utilities will have launched major digital
transformation initiatives.
Advanced analytics will be deployed to drive down overhead costs. The increasing use of Big
Data will create an industry where leadership decisions are more and more data-driven. In 2016, a
majority of CIOs will push innovation funding to minimise operational costs.
Companies will automate more and more manual processes to reduce effort, streamline functions,
and improve results. The demand for next generation IT skills is rising faster than the talent pool in
most companies, meaning that the industry will see more training and recruiting over the year.
In 2016, 70% of utilities companies will look externally to source talent for advanced analytics,
cognitive systems, cloud and cybersecurity.

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Khaled Al Awadi is a UAE National with a total of 25 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE
operations base , Most of the experience were spent as the Gas Operations
Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility &
gas compressor stations . Through the years, he has developed great
experiences in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of supply routes. Many years were spent drafting, &
compiling gas transportation, operation & maintenance agreements along with many MOUs for the
local authorities. He has become a reference for many of the Oil & Gas Conferences held in the
UAE and Energy program broadcasted internationally, via GCC leading satellite Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 21 December 2015 K. Al Awadi

New base 752 special 21 december 2015

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New base 752 special 21 december 2015