Issue: July 2015

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COVER

  • SECTOR RESPONSE TO OIL PRICE DECLINE

    Boom to bust – the familiar cycle for the commodity business of oil and gas – is once again rearing its head. Oil prices have declined over 50% within the last several months. Natural gas prices are following suit, with excess supply in the market. How low will prices go? How long will the price decline last? These are the burning questions of the day. But industry experts know that to provide products for the future, the planning and investment must continue today. Throughout the value chain, oil and gas projects take years to develop, and price fluctuations are all a part of the process.

INSIDE ISSUE

  • MODELS OF ENDURANCE: ARAB GULF STATES BETWEEN OIL PRICES AND GEOPOLITICS

    The initial focus of his talk was Christopher Davidson’s After the Sheikhs: The Coming Collapse of the Gulf Monarchies, predicting the ultimate demise of these royal families as he did in his previous book, published before the Arab Spring. Davidson explained how these monarchies weathered this latest storm, just as they have withstood Arab nationalism, socialism, and republican coups. A flaw in Davidson’s interpretation of the scene, can be viewed through his insistence that oil and religion explain how the gulf monarchies accomplished this feat, a set of answers that betrays a profound ignorance of the paradoxical nature of oil economics and the dynamic nature of stability in the region.

  • REPAVING THE WAY FOR ECONOMIC GROWTH: INVESTMENT CLIMATE IN EGYPT

    In Egypt’s Economic Development Conference, President Abdel Fattah al-Sisi gave a strong message to the international community: Egypt is back on track, stable and ready to receive investors. After four years of political turmoil, the government is making a vehement effort to redeem Egypt’s image on the international stage by introducing energy and fiscal reforms. In recent months, the president has toured European countries, finalizing investment deals and rallied billions in aid from Gulf States. As the country stabilizes and the economy recuperates, the government is moving to create a safe and attractive investment climate for private and foreign investors.

  • FLEXPIPE SYSTEMS: ADVANTAGES OF TWIN 4” LINES OVER 6” STEEL LINES

    Fexpipe Systems products are widely used in the oil and gas industry for applications such as oil gathering, gas gathering, water transfer and gas distribution. These products offer a host of advantages compared to traditional steel pipe, including immunity to corrosion, speed of installation and cost effectiveness.

    As the industry requires pipelines with larger internal diameters, multiple 4” Flexpipe Systems products installed in parallel present a very attractive solution for higher flow rate applications.

  • JOINING THE SHALE REVOLUTION: HURDLES ALONG EGYPT’S PATH

    According to the Cairo University’s Mining Studies and Research Center shale oil could add 4.6 billion barrels to Egypt’s production; shale gas could also contribute another 100tcf. Even the already oil-rich Arab Gulf states are sinking money and expertise into this new sector. Moving into shale may seem like a foregone conclusion in the MENA region, not least in a net importing country like Egypt. Still, it is always wise to pause for thought if we are to make the best of our shale prospects, the current price environment notwithstanding.

  • SHELL COMPANIES IN EGYPT CELEBRATE SAFETY DAY

    On 6 May 2015, Shell companies around the world celebrated the safety day, and so did Shell companies in Egypt. The event was well-received by the employees and generated very positive feedback.

    Under the motto “Achieving Goal Zero. Because We Care,” the communications and safety day was split into two; the first part covered the business and safety updates from the different Shell companies in Egypt; Shell Egypt N.V., Badr Eldin Petroleum Company BAPETCo (the joint-venture company between Shell and the Egyptian General Petroleum Corporation, EGPC), and Shell Lubricants Egypt. The day also included road safety and security presentation, as well as a demonstration of the dangers of distracted driving.

  • KARAM & ASSIL GAS TREATMENT PROJECT

    The Karam and Assil project is one of the most important gas treatment projects operated by Bapetco, as it produces about 150mcf of natural gas and 2000 b/d of condensate. The project successfully was started on November 2014 and is located in the Western Desert, about 300 km west of Cairo.