Market Research of Oil and Gas Sector in United Arab Emirates

For you who have planned to expand business in the United Arab Emirates (U.A.E.), it’s better to know about the economic conditions, leading sectors, or even the regulations. Not to worry because we have covered the market research UAE and give you information especially in the oil and gas sector before you take any business there.

Market Research UAE in a Nutshell

The U.A.E. is known as the biggest country that producing crude oil and petroleum liquids considering to its affiliation on the Petroleum Exporting Countries (OPEC) organization. Moreover, this country is also holding the seventh largest natural gas reserves.

The U.A.E. controls its own oil and gas production and resource development by holding 94 percent of the majority of domestic soil reverses or about 90 billion barrels in 2017. The U.A.E. is also leading toward Asian markets with exporting about 96% of crude oil to Asia, involving some stakeholders from Japan, China, and Korean.

Policy and Regulation

The Supreme Petroleum Council (SPC) is an Abu Dhabi’s central player which establishes the Emirate’s petroleum policies. SPC is also considered as the UAE’s most important organization in formulating energy policy.

Besides SPC, there is ADNOC, Abu Dhabi National Oil Company (ADNOC) which is the organization owned by the country which is expanding the production of crude oil to 3.5 million bpd by 2020, while the country still has the authorities to manage until 2027. There is also many downstream industries I petroleum and chemical sectors owned by ADNOC.

The Leading Sectors

The U.A.E is still looking to increase recovery rates to 70 percent at its fields although the average of the oil recovery in global is still standing at 35% of the rate. Considering this, there still remains some prospects for U.S. firms that giving a low price in operational expenditure. Moreover, it also provides a lifeless filed for producing.

By building advanced technologies, it will provide some ways in using gas. Furthermore, using technologies is also giving more development of the economic sector of a gas field. The U.S. firms will be drilling equipment & chemicals, and giving some natural gas processing facilities, so it grows the demand for electricity at the domestic level.

Opportunities

The U.A.E. is also developing a pipeline network which also producing oil fields by processing plants in some export terminals. The U.A.E. is also importing a huge number of the budget includes line pipe for oil and gas lines, sub-sea line pipe, and casing for drilling an oil and gas.

According to the International Trade Administration’s (ITA), U.A.E. holds the first position between 74 markets based on exporting oil and gas in 2019. Overall, the U.A.E.’s petroleum sector is considered as a low-risk and recognized as a high-reward investment destination.

Market research is really needed in a continual basis of your business. Recognizing market research UAE is an advantage that is really needed in order to reach out to your customers and increase your sales. So, it’s very important to have the insights to know how to strategically position your business in the marketplace, especially in the international market.