Record low crude oil prices, region’s energy plans in spotlight

His Royal Highness, Prince Khalifa Bin Salman Al Khalifa, Prime Minister of Bahrain

MANAMA: With the challenges facing Middle East energy policymakers have never been more complex, uncertainty about global crude oil prices caused by the rise of unconventional hydrocarbons in the US and elsewhere is the top issue will be high on the agenda during the APICORP Energy Forum in the Kingdom of Bahrain.

 Under the patronage of His Royal Highness Prime Minister, Prince Khalifa bin Salman Al Khalifa, AICORP Energy Forum 2015 to be held at the Ritz Carlton Hotel and Spa. The major areas of energy sector including policy, outlook and finance will be deliberated upon by the experts, regulators and Policy, outlook and finance.

 

A stratling question should Middle East producers accept the judgment of the market or can OPEC and non-OPEC oil exporters forge a price stabilisation mechanism for a new era are few topics to be tackled by the experts during the Forum 2015 which opens on November 19th 2015.

 

Domestic energy market management is becoming increasingly important. Soaring consumption, the rise of renewables and the coming of nuclear power to the first time to the Arab world are creating interconnected challenges that can only be addressed by comprehensive energy plans that encompass, are other few important areas for policy makers to look into.

Another big challenge is developing a regional energy plan. Partnerships including cross-border trade in hydrocarbons and electricity are on the agenda and could change the face of Middle East energy after 2030.

 As oil prices continue on their downward trajectory, the outlook for the oil market is understandably volatile. Efforts by the low-cost producers to maintain output to retain and increase market share has been successful to a certain extent. However, it is a strategy that has been hampered by a stuttering Chinese economy and higher than expected resistance from higher cost shale oil producers – with the result that oil prices are not showing any immediate sign of recovery. This volatility clouds the medium-term outlook and poses some challenging questions to the region’s major producers.

 Decision-making on key upstream and downstream capital investments; prioritising spending in a bearish market; maintaining market share without cutting prices and understand the impact of new oil markets entering the market Iran, Iraq and Libya.

World oil prices are almost half the level they were in the summer of 2014. This is having a strong impact on the export earnings and government income of all Middle East oil exporters. The GCC states with record official and foreign exchange reserves can maintain spending on goods and services but the rest must seek new ways to finance current and capital expenditure. Throughout the region governments and business are investigating new ways of supplementing their incomes; efficiencies that don’t undermine long-term growth and innovative ways of financing private and public projects.

The Arab world’s energy wealth is undoubtedly one of its greatest economic strengths. These resources represent enormous value but they cannot create economic growth without strong institutions that actively work to advance innovation, efficiency, and value creation, says Dr. Aabed bin Abdulla Al-Saadoun Chairman of Board of Directors, APICORP.

 The Arab Petroleum Investments Corporation (APICORP) is a multilateral development bank wholly owned by the member states of the Organization of Arab Petroleum Exporting Countries (OAPEC). It has a 40-year track record of investing in, financing, and providing advisory services to the Arab energy sector, ensuring it has become a trusted partner to the Industry.

 In order to debate policy, outlook and finance in the energy sector and to support the successful development of the sector, APICORP is proud to announce the APICORP Energy Forum, adds Chairman.

The Forum will welcome opinions from Ministers on ‘Setting Policy in a Volatile Market’, and from experts to debate the oil market outlook, evaluating investment opportunities and financing options available; with perspectives from lenders, project owners and developers.

 The Chairman APICOPR thanked APICORP’s shareholders, the governments of OAPEC member countries – Saudi Arabia, UAE, Kuwait, Libya, Iraq, Qatar, Algeria, Bahrain, Egypt and Syria — for their commitment to supporting APICORP’s mission over the past four decades. We also thank our numerous partners, stakeholders and employees who have played invaluable roles in developing the APICORP Energy Forum 2015.

 

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