Gulf has more potential for sustainable economic development

Vahan Zanoyan, chairman and CEO of PFC Energy International, has been discussing factors affecting Middle East energy policy with Oil & Gas Middle East. He wants companies to take a more active role in the internal deliberations and brainstorming sessions with clients, and be in a position to add more value to strategic advisors.

"The economic transformation of the Gulf is significant because I believe that, unlike some of the past economic booms, the current expansion has more potential for sustainable economic development," said Zanoyan. "The countries of the region have already outgrown the pure reserve monetisation phase, and have entered into a new phase of not only growth, but also economic maturity. This maturity is characterised by better and improving regulatory environments, much more active participation of the private sector, healthy competition to attract foreign capital and demand, as well as much more agile intra-regional capital and investment flows."

Zanoyan said there are currently several geopolitical forces affecting energy policy and energy economics at the moment, citing energy insecurity as particularly prevalent.

"This is partly driven by high energy prices, but is also inflamed by other factors such as the weakening of multilateral companies which could handle global crises, and a more general sense of insecurity," he said. "At the same time, as major consuming countries have begun questioning the reliability of the traditional suppliers of energy, the major producing and exporting countries have started questioning the reliability of long-term markets. They often cannot justify the vast new investments in production capacity that they are asked to undertake."

Zanoyan said the second leading issue is the new emphasis on national oil companies (NOCs) as stewards of the hydrocarbon resources. Many NOCs have made significant advancements in technical, managerial and commercial skills, so there is less need for international oil and gas companies. At the same time, business relations between NOCs has grown exponentially in the last few years, changing the competitive landscape, within which most international oil companies compete for resources.

"I believe there is a stronger role to be played by NOCs and their involvement will go beyond the hydrocarbon sector. They will become more active in the economic development inside and outside their respective countries and will play a bigger role in the new energy-sector geopolitical structure that is emerging."

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM