The oil and gas industry in the Middle East is undergoing tremendous change, ranging from operating models to the nature of the roles played by its participants. National oil companies (NOC), which rank among the world’s largest companies, are the largest resource holders and increasingly controlling oil and gas investments both domestically and internationally. Growing markets, new technologies, supply side constraints, shifting demand patterns, and geopolitical events are transforming the oil and gas industry and reshaping the energy landscape dramatically. The 5 Deloitte thought leadership reports listed herein provide a comprehensive take on the major trends and aspects shaping the industry, as well as the recent advancement throughout the region.
1. Connecting the bright spots: Key components of an oil and gas governance framework (Deloitte, August 2013)
Without proper governance, NOCs can face significant challenges in many areas, both external and internal to the organization. From an external point of view, sourcing funding and attracting investment will be very difficult if those sources of funding and investment are not convinced that there are adequate controls, checks and balances that a governance framework can provide in place. Additionally, the view of earnings and balance sheet performance can be impaired by the lack of trust and confidence in the numbers that are being published without proper oversight. Internally, the lack of governance can lead to inefficiencies in the system in all aspects such as capital deployment, organizational performance and operational issues; http://bit.ly/147B7lZ
2. Managing scarcity for the future: Mothers of invention (Deloitte, May 2013)
Although oil is still projected to remain the primary fuel, significant advancements in technology will cause natural gas to overtake coal as the number two fuel source. In the Middle East, gas is forecasted to overtake oil in demand after 2025, with 50% of all energy demand coming from gas in 2040. Most National Oil Companies (NOCs) in the Middle East already have multi-billion dollar investment plans for gas exploration and production. GCC states, particularly the UAE, Qatar and Saudi Arabia, plan to award contracts worth over US68 billion during the next five years to raise gas production; http://bit.ly/19QLdbW
3. Oil and Gas reality check 2013: A look at the top issues facing the oil and gas sector (Deloitte, May 2013)
This report focuses on five of the primary challenges impacting the oil and gas sector globally, and provides our view of the direction which these trends will follow.
Issues covered in the report include Shale gas, LNG pricing, Resource nationalism, NOCs and managing market complexity. The report further explores the industry fundamentals of each trend – the supply, demand, macroeconomic, regulatory, cost, price, and competitive behavior; http://bit.ly/16kdB64
4. Mergers and Acquisitions in the Oil and Gas industry: Current upstream M&A issues and transaction considerations (Deloitte, December, 2012)
While oil and gas prices rise and fall, a resurgent regional and global energy market, driven by increased demand from many Asian economies and the MENA region, and the investment needs that accompany that resurgence, should set the stage for sustained M&A activity over the longer term. The whitepaper tackles the M&A issues that face investors looking to transact in the region, and how these are being managed through the screening, diligence and valuation phases of the transaction; http://bit.ly/196TUyw
5. The Deloitte guide to Oil and Gas in East Africa: Where potential lies (Deloitte, March 2013)
From sleepy backwaters to bonanza – now every potential hydrocarbon basin across East Africa is the subject of intense interest including significant onshore oil discoveries in Uganda and Kenya, and world-class offshore discoveries from Tanzania and Mozambique. This is the first edition of Deloitte’s guide to the upstream industry in East Africa; http://bit.ly/H1hVRH