Why Globally Future of petroleum industries is in doldrum ?
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The petroleum industry globally is struggling due to lower crude oil prices, competition from liquefied natural gas, shale oil and gas, and renewable energy like solar power. Stricter emissions and spill regulations, an aging workforce and equipment, and higher costs are also challenges. However, some Asian countries like India and Indonesia may continue growing their petroleum consumption since per capita use is still low and they import much of what they need.
Why Globally Future of petroleum industries is in doldrum ?
- 1. Q.1. Why Globally Future of Petroleum Industries is in doldrum ? Globally Oil & Gas sector as a whole and particularly petroleum industries all are in doldrums due to following reasons. Lower Crude Prices Competition from FLNG & shale crude / gas and Renewable Solar Energy Ageing of Equipment causing frequent shutdown/catastrophes Tighter regulation on spills & Emissions Retirement and shortage of skill manpower Lack of real expertize of inspection & reliability expert Poor Margin Increased maintenance and operating cost Lack of funds for integration of refineries with petrochemicals Mandatory regulation for high quality products (Euro V & Euro VI ) Climate of Change & Global Warming
- 2. All above resulting increased risk, more cost and high level of complexities to optimize performance of facilities, assets and workforce. However, in Asia, fate of downstream industries is differing region to region. Middle East is fully saturated and low oil price has broken the backbone of OPEC countries like Saudi & Iran. South East Asian countries including China are fully saturated in consumption of petroleum and facing the threat of big competition. However, in India & Indonesia, where per capita consumption of petroleum product is still lowest in the world taking the full advantage of low oil price regime and its economy shall grow since it imports most of its consumption of petroleum from outside. India is going to become the Pivot for petroleum industries and Indonesia is emerging as good consumer in Asia.