OIL AND GAS INDUSTRY LONG-TERM OUTLOOK REMAINS POSITIVE

By Zakaria Abdul Wahab

SINGAPORE, Dec 2 (Bernama) -- The long-term outlook for the oil and gas industry remains positive although the current oil prices have lowered, Singapore's Senior Minister of State for Trade and Industry, S. Iswaran, said Tuesday.

He said despite the uncertainties in the global oil industry, the
fundamentals had not changed.

"The prospect for sustained demand for energy from both the developed and
emerging economies remains intact," he said when opening the 17th International
Oil & Gas Exhibition and Conference at the Suntec International Conference &
Exhibition Centre here Tuesday.

He said now was an ideal time for the industry to deliberate on how to cope
with the short-term challenges ahead, so as to position itself for the long-term
opportunities.

"This way, the industry will emerge stronger when the global economy turns
around," he added.

The minister said the oil and gas industry had achieved continuous high
double-digit growth in the last few years.

However, he said, like most sectors, the industry had also been affected by
the current global financial and economic crisis.

He said in 2006, oil prices were around US$65 (US$1=RM3.60) per barrel and
had more than doubled to a record high of US$147 per barrel in July this year,
but had lowered to about US$50 today.

Iswaran said Singapore was optimistic about the future of the industry, an
important growth area for the city-state, and was committed to growing the
sector that was raking in billions of dollars in manufacturing output last
year.