Petronas anticipates challenging oil & gas industry in 2021
KUALA LUMPUR, Dec 31 — The oil and gas industry outlook in 2021 is expected to remain challenging due to the unprecedented demand destruction from the COVID-19 pandemic which has made a profound impact on both the domestic and global markets, said Petroleum Nasional Bhd (Petronas).
The national oil company has maintained a prudent view despite the collapse in oil prices and will continue to accelerate the transition towards a low-carbon economy, spurring policy intervention and global collaborations across industries.
“Although gas remains a crucial and cleaner source of fuel, diversification into renewable energy is imperative.
“Petronas has taken measured steps that demonstrate our stronger commitment to sustainability as we take cognisance of the acceleration of the global energy transition, heightened by stakeholder expectations and the vast opportunities,” said president and group chief executive officer Tengku Muhammad Taufik in a statement.
Building on Petronas’ desire to drive a fundamental shift in the way energy is produced, he said the company announced its aspiration to achieve net zero carbon emissions by 2050 as part of its holistic approach to sustainability that balances environment, social and governance (ESG) considerations across the value chain.
Petronas today released its annual Petronas Activity Outlook (PAO) for 2021-2023 to share the company’s insights into industry trends, demand outlook and the upcoming activities of Petronas’ Upstream, Gas and New Energy and Downstream businesses.
Meanwhile, vice president of group procurement Frieda Amat said that the current crisis presents the company with the need to remain resilient and agile, taking decisive measures in weathering the market volatility and energy transition.
“It is imperative for industry players to adapt and embrace the new normal. Working with tighter margins require industry players to shift the norms, embrace digitalisation, technology advancement, and creative partnership to unlock opportunities.
“Petronas foresees a steady outlook for production support, drilling, fabrication and installation of wellhead platforms and subsea facilities, as well as decommissioning activities. However, a modest outlook is expected for fabrication and installation of central processing platforms and project support vessels,” she said.
In the report, Petronas also shares insights that will have a positive impact on the industry, which include pushing further the increase in use of natural gas as a cleaner source of fuel in the energy transition while building capabilities in renewable energy.
The report also highlighted that the company is maturing the technologies to support its sustainability aspirations of achieving net zero carbon emissions by 2050.