Stakeholders in the global energy market need to work more collaboratively to strengthen market’s resilience in the face of the economic and supply chain disruptions caused by the COVID-19 pandemic, Andrew Laven, Chief Operating Officer, Sahara Energy Resources DMCC, Dubai, has urged.
He stated that while the market needs to brace up for a shift in consumption pattern following the pandemic disruptions, players should also chance on the new opportunities underlying these changes.
A shift in consumption such as increased driving and less flying, for instance, will see demand for products change, he said in an article exploring key lessons from the pandemic for the energy market in the trade publication, Energy Voice.
“Refineries may need to change the way they operate and produce different proportions of each fuel, which may see some refineries unable to operate economically and being forced to close. Where things change, though, there are also opportunities for new energies – when demand starts to pick up maybe the world will use it as an opportunity to take a step towards cleaner energies,” he said.
The CEO sees the path to recovery likely to be bumpy with events moving at different pace quickly. Yet, oil will remain a critical element of the recovery even though there are limited options to stimulate demand, according to his projection.
He recommends that the sector must prepare for recovery: positioning all aspects of the value chain to supply energy to countries, communities and individuals, in the article dubbed “Finding the New Norms in the Post-COVID Supply Chain”.
Laven equally argued that given experiences from previous market disruptions, it was certain that the market would rebound especially when all stakeholders work together to achieve the greater good for all.
“The oil market is exceptionally robust and will bounce back, but it would be a mistake to miss this opportunity to learn from the current challenges and build greater resilience in our supply chains for the future. In this area, we are happy to lead by example. Resilience has always been a part of Sahara Group’s approach across the African continent, building a business that learns from the market conditions in order to adapt to and meet current requirements and changing circumstances,” he added.
Laven’s Sahara Energy Resources DMCC, Dubai is an affiliate of energy conglomerate Sahara Group with operations in Africa, Asia, Europe and the Middle East.
