In 2009, the internationally renowned economist, Mohamed El-Erian, coined the term New Normal: an economic alteration of normalcy in the aftermath of a global recession. Now that the coronavirus pandemic has posed a growth environment dampened by structural impediments, the world is yet to be taken aback by a possible new 'New Normal'.
While an operational cost efficiency strategy is a notion that has been implemented in various companies in the oil and gas sector. So far, conventional operational cost efficiency strategies have been implemented in Egypt (especially when discussing increased drilling costs), but given the recent impact of the global pandemic (i.e. COVID-19), more detailed and developed strategies are necessary to limit the overall impact.
The oil and gas industry is no stranger to world economic turmoil; and recently it has brought the industry to a whole new low. Global oil prices crashed down with Brent crude recording $20.39 on April 21 as a result of the coronavirus pandemic, which in turn has led to an imbalance in the global oil supply and demand equilibrium. This has created a domino effect impacting the global oil industry and, consequently, affecting the petrochemical industry.
Non-linear and unpredictable; the novel coronavirus (COVID-19) has ferociously hit the oil and gas markets leaving a rippling effect across the industry, leading to a possible global economic crisis and a grave decline in oil prices. However, the pandemic also opened the minds about technology as a solution that can minimize the losses.
While the concept of digitalization is not new, the recent emergence of the coronavirus (COVID-19) pandemic has brought it into the spotlight more than ever. Digitalization in the oil and gas sector has become a necessity as opposed to a mere option over the last several months. In fact, digitalization has been a topic of discussion over the last five decades.
The global community is now facing a revolution of information technologies. Computers, telecommunication networks and other digital systems allow us to transmit information quickly and connect with distant places allowing the institutions and organizations to enhance their quality, productivity, as well as control the costs.
Egypt has a vast wealth of mineral resources including gold, copper, silver, zinc, platinum and several other precious minerals and base metals. These resources are largely located in the Arabian-Nubian Shield (ANS), otherwise known as the Eastern Desert and the Sinai Peninsula. Having such a large expanse of mineral wealth could mean a promising future for Egypt’s economy. This is especially interesting with the new mining bid round, which could result in an abundance of exploration and exploitation.
To begin with, Egypt is one of the most mineral-wealthy countries in Africa. In fact, Egypt is not only abundant in the amount of mineral resources available, but in the variety of these resources. The primary essential mineral resources found in Egypt mainly consist of metallic and non-metallic mineral resources. Metallic mineral resources include materials such as copper, lead, nickel, cobalt, gold and silver, while non-metallic metals typically are those of limestone, sandstone and gravel dolomite.
In light of the global intensive need for the resources and energy, new technologies are developed for the sake of maximizing the production and compensate such needs at the lowest costs. In the mining industry, there has always been a need for developing the exploration and production methods along with their respective new technologies aiming at increasing the outputs.
The oil and gas industry is always changing; seeking advancement and improvement, whether it is in areas of technology or operations. However, acquiring and developing human resources should not be ignored, as calibers are the linking point between the present and the future. There is a myriad of qualified engineers, geoscientists, and professionals in the oil and gas industry. However, the abundance of one entity could lead to drastic changes in the future. According to a research published by the Italian National Research Council entitled ‘The History of Brain Drain’ defines Brain Drain as “the emigration of highly trained or qualified people from a particular country”.
