New research by DNV GL, the technical advisor to the oil and gas industry, has revealed that more oil and gas professionals in Singapore (46%) than globally (31%) are looking for new gas projects.
Nearly nine out of ten respondents (87%) believe that gas will become an increasingly important component in the global energy mix
in the next ten years – ten percentage points higher than the global average.
Short-term agility, long-term resilience is DNV GL’s seventh annual benchmark study on the outlook for the oil and gas industry, providing a snapshot of industry confidence, priorities and concerns for the year ahead. It draws on a survey of 723 senior sector players.
The research by DNV GL reveals
signs of deep, strategic changes to ensure sustainable growth beyond the oil and gas sector’s cyclical peaks and troughs. A slightly higher proportion of Singaporeans (52% compared to 49% globally) stated they would look beyond oil and gas to broaden their business portfolios. However, only 15% expect increased investment in renewables this year, compared to 26% globally.
"The belief in gas of senior professionals in Singapore may be based on the substantial volumes of gas reserves in this region and the urgent need for more environmentally-friendly fuels in the power sector. Local pollution is a serious problem in many cities in Asia. Switching from coal to gas would improve public health substantially,” says Arve Johan Kalleklev, regional manager, DNV GL – Oil & Gas South East Asia & Australia
More Singapore respondents expect an increased focus on emission controls, 22% vs 16% globally.
Aligned with global opinion, Singaporeans see uneconomic oil prices as the biggest barrier to growth (61% versus 64%), though that figure has fallen from 66% since last year. A higher proportion than global respondents considers the weak global economy (41% versus 27%) and competitive pressure (33% versus 23%) to be the main obstacles to business prosperity.