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Oil and gas companies in the Middle East possess above-average skills in risk management, which allows them to function well amid a risky industry landscape, according to a new report by U.S. risk management research company Marsh.
The report, titled "Benchmarking the Middle East: Strengths and Opportunities of the World's Energy Superpower," examines the comparative risk quality of oil, gas and petrochemical facilities located in the Middle East, in comparison to more than 500 similar facilities globally. The analysis of the results shows that despite the challenges that companies in the region face in terms of geopolitics and technology, they are more adept in risk management than their counterparts elsewhere.
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Overall, even though Middle Eastern companies are part of a very dynamic risk landscape, there is a marked tendency for companies to pursue safer operations. The biggest strength of the region lies in hardware, according to the Marsh report, with capital investment, land availability and the relatively modern plants being among the most influential factors.
However, the report also identified several areas which companies from the Middle East should focus on in order to improve operations further. These include software and management of existing assets, as well as emergency response equipment, the analysis revealed.
According to a report by the International Energy Agency, the oil and gas industry in the Middle East will need $1.6 trillion of new investment over the next 25 years.