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Rebounding Oil Prices Signal Moment for UAE Energy Firms to Drive Technology Innovation
Published Aug 7, 2016
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Rebounding oil and gas prices signal the time for UAE energy firms to invest in technology innovation to drive USD 540 billion worth of Middle East projects, industry experts announced today.
The UAE is one of the world’s largest petroleum producers with exports at USD 123 billion, and is a pioneer in using natural gas for enhanced oil recovery techniques, with crude oil set to grow by 30 percent to 3.5 million barrels/day by 2020, according to the U.S. Energy Information Administration.
“In this era of rebounding oil and gas prices, UAE energy firms have the potential to be global leaders in using technology to drive business innovation. Real-time insights can transform the procurement process with the depth, accuracy, and transparency to deliver projects on time and on budget,” said Tayfun Topkoc, Managing Director for the UAE at global technology company SAP.
The Middle East hosts a USD 540 billion pipeline of oil and gas capital projects, according to a recent PWC report. Oil and gas companies are increasingly turning to technology to enhance project time and budgets, especially with the Brent crude oil price rebounding to about USD 45/barrel.
Middle East and UAE energy firms can use real-time insights to manage production, maintenance, engineering, and financials, and develop long-term budgets that save time, money, and resources.
Worldwide, many oil and gas firms are using the cloud-based Ariba Network to enhance procurement, with up to 30 percent savings by managing spending and suppliers, the financial supply chain, and e-commerce. Ariba, the world’s largest business network, traded USD 740 billion in commerce in 2015.
Demonstrating Ariba’s potential in energy, American waste management firm Clean Harbors Inc. has used Ariba to increase e-commerce by 48 percent, and reduce invoicing costs by nearly one-third. On Ariba, Clean Harbors Inc. counts USD 216 billion in transaction spend with 30,000 customers.
Worldwide, more than 800 oil and gas companies are using SAP solutions, including 85 percent of the Forbes 2000 oil and gas companies.
Posted by
VMD - [Virtual Marketing Department]
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