KPMG Comment: Oil and Gas sector outlook
Dubai, United Arab Emirates - November 11, 2019: A slew of exciting developments are transforming the oil and gas (O&G) industry globally. Artificial intelligence and machine learning are driving a digital revolution. Organizations within the industry are focusing on extensive capital investment.
The Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) which opens today brings together the very companies, decision and policy makers that shape the future of oil and gas supply across 4 days of focused business, dialogue and knowledge transfer that addresses today’s energy challenges and define tomorrow’s energy landscape.
We would like to share with you the below statement from Nizar Jichi, Partner, Head of Energy and Natural Resources, KPMG Lower Gulf, who will be exhibiting at the event, should you wish to develop the story further:
“As per the KPMG Global CEO Outlook 2019 survey, 94% of energy company CEOs are confident in their own business’s growth prospects over the next three years. Softening this optimistic outlook, 76% of CEOs across all sectors surveyed said their company’s growth would depend on their ability to manage the transition to a low carbon, clean technology economy.
Sustainable energy innovation faces some challenges: high technological risk, financial costs, and strong commercial competition from established, low-cost products and solutions. These hurdles may be at least partially mitigated by defining and securing the optimum mix of private and public funding, and establishing a culture of transparent policy discussion.
Research also suggests that some millennials’ may have misconceptions about the industry which could be hindering valuable talent from exploring fulfilling careers in the sector. The O&G sector would do well to consider modifying its employee value proposition to match millennial values, focusing on purpose rather than compensation alone, as well as emphasizing the chance to work with cutting-edge technology in an industry with fairly high levels of corporate social responsibility (CSR).
Companies in the energy sector also face higher regulatory and public interest scrutiny from governments. Increased digitization is creating an ever-more connected world, leading to greater awareness of data breaches, misconduct and other risks among stakeholders and the wider public. Organizations must balance meeting shareholders’ expectations for financial targets, while holding themselves accountable for possible environmental impact, as well as combating potential bribery and corruption.”
Attached is a photo of Nizar Jichi. Please let us know if you need any other information or comments on this topic.
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