Abu Dhabi: Slide in oil prices will be in focus at the Abu Dhabi International Petroleum Exhibition and Conference (Adipec) 2014, which starts on Monday. Thousands of oil and industry gas professionals from across the world are attending the four-day event at Abu Dhabi National Exhibition Centre (Adnec).
According to experts, oil prices are likely to remain under pressure in the next two to three years due to increased oil production, dampening growth and a strong dollar. “Oil prices might go up if the geo-political situation in Iraq worsens and affects the oil production. But at the moment it looks the prices will remain lower,” said an oil expert from Emirates NBD who did not want to be named.
Francisco Quintana, head of economic research at Asiya Investments said the price of oil is very sensitive to geopolitical risk.
“In the last couple of days the situation seems to be deteriorating in Russia, and that brings enough uncertainty to the market to keep prices stable. Russia is a major energy player and oil prices would rise immediately if Russian troops move into Ukraine, something that is considerably likelier today compared to a week ago,” he said.
Brent crude, a benchmark for oil, has plunged more than 20 per cent since peaking in June at about $115 (Dh422) a barrel amid oversupply and lack of demand. It is just above $83 at the moment.
The Organisation of the Petroleum Exporting Countries (Opec) are due to meet at the end of the month to take stock of the situation. Kuwait’s oil minister Ali Al Omair said last month that Opec is unlikely to cut production to counter the slide in oil prices.
Apart from oil prices, other important topics that would be in the limelight during the event would be Abu Dhabi’s concession agreements with oil companies. The agreements expired earlier this year and the government is yet to take a decision on whom to award concessions. Industry will be closely observing the developments as news reports have said that Abu Dhabi is also considering Asian companies apart from western oil firms like Shell, Total and British Petroleum.
Science and technology
The event will start with a keynote speech given by Dr Michio Kaku, a physicist and authority on the environment. He will present information on the impact of science and technology on energy production with insights and projections on the ever growing global energy demand.
In the ministerial panel on day one, Suhail Al Mazroui, the UAE minister of energy and ministers from other countries will offer new insights about the development of local talent.
In other sessions, Adnoc and Shell will host a series of panel discussions tackling some of the significant issues facing the oil and gas industry. Energy experts will discuss and recommend solutions to some of the industry’s challenges including the outlook for energy efficiency, the critical energy-water nexus, the shale revolution and the impact of big data in transforming the sector.
Meanwhile, Jebel Ali Free Zone (Jafza) and its sister organisation TechnoPark, a centre for innovation driven sustainable industries in energy, water and health sectors, have announced their participation in Adipec. The oil and gas sector in Jafza has recorded over 44 per cent increase in the last four years, Jafza said in a press release.
A number of oil companies like Kuwait Oil Corporation, Qatar petroleum, Saudi Aramco and China Petroleum Technology and Development Corporation are taking part.
