It is no secret that the oil and gas industry is facing clear challenges, with the world experiencing declining oil prices and the many consequences that resulted from this trend.

Speculations, analysis, forecasts, and fear — these four words sum up the overall global sentiment we have all been experiencing over the past year as we read daily headlines of oil price updates and how it is affecting other sectors.

All eyes are watching, waiting patiently, hoping this shall pass.

With no definite outcome in sight, it is understandable that many economies are revisiting their strategies, with debates being held on public spending cutbacks. Contrary to common instinct, the one area that governments should continue to invest in — despite the current economic backdrop — is research and development, particularly in the energy sector.

It is important, more so now than ever, to invest heavily in technology and innovation with regards to energy. As traditional forms of energy and hydrocarbons become more challenging to locate and extract, it is essential we invest in the necessary tools to improve production and enhance efficiency, thereby, cutting costs.

We also need to be creative in sourcing our energy. Innovation is key!

Governments in the GCC understand this formula well, and are continuing to invest in R&D, with the UAE declaring 2015 as the ‘Year of Innovation’. According to the Gulf Petrochemicals and Chemicals Association’s ‘Innovation Survey 2015’, more than 80 per cent of the GCC’s main petrochemical and chemical producers have made innovation a key business priority, with 41 per cent of companies having an explicit innovation strategy for their operations.

GCC states, along with other Arab countries, also agreed to adopt the strategy for science, technology and innovation (STI) at the 14th Congress of Ministers of Higher Education and Scientific Research in the Arab World held in Riyadh in March. The strategy called for an increase in financial support for R&D to 3 per cent of GDP, with the private sector contributing significantly as well.

The priority would cover 14 areas, including energy and renewable energy. Innovation, however, remains to be an expensive necessity.

In spite of the presence of a clear understanding of positive end results pertaining to R&D projects, the initial investments that need to be made are costly.

Therefore, it would be unrealistic to expect organisations within the energy sector to bear the burden of this alone during these difficult times. How can the rest of us help? What can we offer to drive innovation?

It is essential all parties join forces to ensure research efforts are not halted, at a time where they are crucial. In addition to the support offered by governments, the private and academic sectors need to partner to push these efforts forward.

We are already witnessing many examples of such efforts taking place. Recently, a research team at the UAE’s American University of Sharjah made an important breakthrough in energy harvesting technology. Sponsored by Mubadala Development Co., in collaboration with Masdar Institute of Science and Technology, the team developed a device that harnesses electromagnetic radiation from different sources and then reuses it to energise low power circuits.

Typically, a common problem faced with those harvesters was that the device itself utilised most of the collected energy. The research team was able to minimise their harvester’s energy consumption and to raise its efficiency to more than 80 per cent.

Other research groups in the university are working on topics related to waste management and waste to energy conversion in collaboration with Bee’ah.

However, what we see now is still not enough. Despite government support and partnerships, the R&D sector still needs more funding. Universities in the region have been playing an important role in disseminating research and knowledge, but still have much more to offer to support the energy sectors, and their respective countries’ economies as a whole.

That is why it is essential to continue to promote interest in R&D amongst different parties.

Knowledge sharing and innovation are key to any economy’s success. In the words of novelist Milan Kundera, ‘Business has only two functions — marketing and innovation.’

We must continue to work together as academics, industry experts, leaders and supporters, to remain ahead and to withstand the storm of volatile oil prices.

— The writer is interim Vice-Provost for Research and Graduate Studies at the American University of Sharjah.