SINGAPORE, Dec. 8, 2016 /PRNewswire/ -- More than two-thirds (70 per cent) of maritime leaders in Asia now believe the persistent volatility in oil prices represents a structural rather than cyclical change, according to new data released today by Sea Asia 2017.
The results come as the maritime industry faces its toughest period yet -- with oil prices falling by more than 70 per cent since mid-2014 -- and with the recent supply agreement by OPEC to cut production. Conducted ahead of Sea Asia 2017, the survey was carried out among maritime leaders to identify trends to shape discussions at Sea Asia 2017 next April.
Global expert on oil macro analysis and Managing Partner of Rystad Energy, Mr Jarand Rystad, a speaker at Sea Asia 2017, said the big debate right now is whether markets are in fact experiencing a structural change or a traditional cycle.
"The continued growth of US shale fields and recent significant reduction in costs to develop this resource clearly represents a structural change. The counter view is that shale alone still cannot balance the decline in supply globally. Therefore, conventional production from onshore and offshore will still be an important part of global supply growth beyond 2020," he said.
On the recent OPEC announcement to reduce production, Mr Rystad shared, "The surprisingly firm agreement by OPEC surely puts the cartel back on stage, but the relatively modest response in oil prices could be short-lived. In the coming years, oil prices will firstly be regulated by market forces. Balancing is also happening slowly but firmly from thousands of producing oil fields around the world."
The Sea Asia 2017 survey also revealed that only a quarter of the maritime leaders expected oil prices (26 per cent) and the maritime industry overall (25 per cent) to rebound to pre-2014 levels in the next six months.
The leaders cited tonnage oversupply (83 per cent), innovation (44 per cent), and talent shortages (30 per cent) as other critical issues facing the broader maritime industry in the current down-swing.
Despite these challenges, 77 per cent of leaders said they were confident in the industry's long-term prospects.
Mr David Roberts, Managing Director of The Standard Club Asia Ltd, said it's important for maritime companies to use the period for reflection, and to keep a long-term view.
"In the past, the industry has been too focused on growth at all costs, and through this downturn we're seeing a positive shift of attitudes towards achieving efficiencies, cost-control, and sustainability. Companies should also take care not to reduce operational capacities too greatly, as they may find themselves behind when the market rebounds," said Mr Roberts.
In preparation for an eventual upturn, 85 per cent of maritime leaders are focusing on talent development, following extensive down-sizing across the industry. Tighter control of costs, greater industry collaboration, and research and innovation were also identified as the top priorities for leaders in the next 12 to 18 months.
Seatrade Chairman, Chris Hayman, said the results of the Sea Asia 2017 survey clearly show that players across the industry are facing a challenging time, and there is a real desire for collaboration in key areas.
Mr Hayman said, "During the downturn, most leaders have said they will focus on innovation and talent up-skilling to meet future challenges. In this environment, our conference themes for Sea Asia 2017, including technology and smart shipping, will provide a critical platform for discussion and debate, and will bring together exhibitors from across the region with new technologies and skill-sets."
Sea Asia 2017 will be held in Singapore at the Marina Bay Sands®, Singapore from 25-27 April 2017.
For more information, please contact:
About Sea Asia 2017
Sea Asia, the premier maritime and offshore conference and exhibition in Asia is returning for the 6th edition on 25 - 27 April 2017 at the Marina Bay Sands®, Singapore. Co-organised by Seatrade and the Singapore Maritime Foundation, Sea Asia is well-attended by trade professionals and some of the most influential and respected leaders in the industry, delivering an unparalleled reach of key decision-makers.
As the anchor event held in conjunction with the Singapore Maritime Week, Sea Asia enjoys strong support from government agencies and key trade associations, firmly establishing itself in the marketplace as the leading platform for both the global and local maritime and offshore communities to explore business, network and unveil new products and services.
Alongside an international exhibition, the highly acclaimed and interactive Sea Asia conference complements and puts Sea Asia at the forefront of regional maritime events. International thought-leaders will address the latest topics, debate on key trends, and discuss opportunities and challenges facing the maritime and offshore businesses from a commercial perspective.
The Standard Club Asia Ltd is one of the key sponsors of Sea Asia 2017. For a full list of sponsors and exhibitors, and more information on the conference programme, please visit www.sea-asia.com/.
Founded in 1970, Seatrade was acquired in 2014 by UBM, the world's second largest media and event organiser across a wide variety of industries. Seatrade's publications, events, management training, research and award schemes cover every aspect of the cruise and maritime industries. The company's principal strength is its ability to bring key people together, encouraging innovation and facilitating better communication within the industry. Seatrade is headquartered in Colchester, UK, with regional offices in Dubai, Singapore, as well as representatives in all major maritime centres and cruise destinations across the globe.
For more information, please visit www.seatrade-maritime.com.
About the Singapore Maritime Foundation
Established in 2004, the Singapore Maritime Foundation (SMF) is a private sector-led organisation that seeks to develop and promote Singapore as an International Maritime Centre (IMC). As the representative voice for the commercial players of the maritime industry, SMF seeks to forge strong partnerships with the public and private sectors of the maritime industry. SMF spearheads initiatives to promote the diverse clusters of the maritime industry in Singapore and at international frontiers, and to attract young talents to join the sector. SMF is directed by its Board of Directors which comprises prominent leaders in the Singapore maritime community.
For details, please visit www.smf.com.sg.
About the Singapore Maritime Week 2017 (22nd -- 28th April 2017)
Sea Asia 2017 is held in conjunction with the Singapore Maritime Week 2017 (SMW). SMW is the leading maritime event in Singapore driven by the Maritime and Port Authority of Singapore. SMW gathers the international maritime community in Singapore for a week of conferences, dialogues, exhibitions and social events in celebration of all things maritime. These events reflect the vibrancy and diversity of Singapore as a major international maritime centre.
Singapore Maritime Week (SMW) is the leading maritime event in Singapore. Driven by the Maritime and Port Authority of Singapore (MPA), SMW gathers the international maritime community in Singapore for a week of conferences, dialogues, exhibitions and social events in celebration of all things maritime. The range of activities and events organised by MPA, the industry, and research and educational institutions, as well as the cosmopolitan profile of participants, reflect the vibrancy and diversity of Singapore as a major international maritime centre.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/oil-prices-under-structural-change-say-two-thirds-of-maritime-leaders-sea-asia-2017-survey-300375184.html
SOURCE Seatrade Communications