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Offshore leaders to share insights on industry outlook at Offshore Marine Forum 2016

Offshore leaders to share insights on industry outlook at Offshore Marine Forum 2016
Offshore industry experts are gearing up to debate and analyse the future of oil prices and how the local offshore industry should prepare for the next price boom at the Offshore Marine Forum 2016 to be held in Singapore on 19 April 2016.

The forum’s keynote speaker Jarand Rystad, a global expert on oil macro analysis and managing partner of Rystad Energy, will share his insights on whether he believes the industry will see a three figure oil price again and when.

Ahead of the forum, Rystad said, “The global oil market has seen 10 consecutive quarters of oversupply which has led to the current price collapse. If you compare prices to the underlying cost and activity level required to produce oil, they’re at their lowest ever levels.

“This is having a significant impact on the offshore sector with more than $300bn being cut this year alone versus 2014 in global upstream investments.”

Apart from Rystad, the Offshore Marine Forum 2016 also features panellist speakers including Andreas Sohmen-Pao, chairman of BW Group and the Singapore Maritime Foundation; Carl K Arnet, ceo of BW Offshore; YY Chow, ceo of Keppel Offshore & Marine; and Ron Mathison, managing director of Swire Pacific Offshore Operations.

Rystad and the panellist speakers will also share their views on the impact oil price volatility is having on the offshore sector and the industry’s long term outlook.

“While low oil prices have depressed the offshore sector and led to a decline in global production, the stable demand for energy means the long-term fundamentals are still strong, and the sector must remain prepared for a comeback,” Rystad said.

Amid falling oil prices, many companies are looking at headcount as a way to reduce costs. Rystad said it is crucial that the industry takes a long-term perspective when thinking about cost efficiency and productivity in preparation for the inevitable up-cycle.

“Companies in the industry are cutting jobs, resources, and exploration investment in a bid to reduce costs. While it is important that companies look to manage costs at this time, it is also crucial that they look ahead and ensure that there will not be a shortage of oil service capacity in a few years when the current situation turns around,” he commented.

Speakers at the Offshore Marine Forum 2016 will also tackle other issues such as the future of energy demand and how the Asian region is impacted by the current situation.

The half-day Offshore Marine Forum, into its 2nd edition, is held during the annual Singapore Maritime Week 2016 from 17-22 April.