How the GCC’s energy sector will transform post Covid-19 – The National

How the GCC’s energy sector will transform post Covid-19 – The National

The crisis offers energy players a chance to refocus on long-term sustainability, preparing for a world that relies far less on fossil fuels. With Brent crude prices nearing $20 a barrel as of late March 2020 (the lowest price in nearly two decades), governments face a number of challenges.. Despite its severity, energy players in the GCC-including governments and their national oil, gas, petrochemical, and utilities companies-can treat this crisis as an opportunity to refocus on long-term sustainability.. Energy players in the region must now walk a fine line between urgent and important decisions, balancing short, medium and long-term trade-offs to navigate through the crisis.. The energy sectors of the GCC have three options against which to start taking immediate action: retrench, rethink or repower.. Governments can adopt a wait-and-see approach, postponing major actions until oil prices recover.. A key aspect is reinforcing efforts to build domestic supply chains and capabilities.. The most ambitious strategic approach is to treat the pandemic as an opportunity to fundamentally reshape the energy sector and prepare for the long-term global transition away from carbon-based resources.. The strategy would require bold action in several areas.. The GCC could create a new economy that would ultimately