BAKU, Azerbaijan, June 2. National oil companies in Middle Eastern countries will focus on protecting revenue streams and reducing the carbon intensity of their operations over the next three to five years, Partner, Strategy and Operations at Deloitte, Alexios Zachariadis, said at a panel discussion on the second day of Baku Energy Week, Trend reports.
According to him, the geopolitical conflicts that have taken place in recent years, especially the events in the Middle East, have shown that energy security is no longer a secondary issue. Energy security has now become one of the main investment factors both at the management level of companies and in the strategic decisions of states.
Zachariadis said that companies and governments are not backing down from the energy transition, but are trying to phase this process in a more pragmatic way.
"In this context, the main focus is on maintaining the reliability of energy supply, maintaining commercial revenues, and decarbonizing businesses. Currently, five main investment trends are observed in the energy sector.
These include increasing reliability in the production sector and creating backup capacities, accelerating investments in gas and liquefied natural gas (LNG) projects, increasing investments in storage and logistics infrastructure rather than pipelines, improving trading operations, and integrating digital technologies into operations.
The expert noted that companies are investing more selectively in the downstream value chain.
"In addition, activities are continuing to decarbonize the existing hydrocarbon system. This process includes the use of renewable energy sources, including solar and nuclear energy, reducing methane emissions, introducing artificial intelligence solutions, and improving operational efficiency," he explained.
In his opinion, recent conflicts, especially the risks arising in the Strait of Hormuz, have revealed the need for new approaches to increasing the sustainability of energy exports. This requires the development of new partnerships and joint infrastructure projects between countries.
"Some countries, such as Qatar, have faced serious difficulties in exporting LNG. Kuwait and Iraq have also been significantly affected. Therefore, the countries of the region are considering the possibility of closer cooperation on alternative routes and joint infrastructure projects that bypass the existing narrow passages. The goal is to maintain the reliability of supply for key customers and maintain the status of a reliable partner in the energy market," he added.
