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The oil and gas industry has traditionally been Saudi Arabia’s main economic driver and one of its most important steel consumers. Growing global oil demand saw Saudi invest substantially into increased production capacity, requiring vast tonnages of products such as plate, beams and pipe. The revenue earned from oil exports has allowed Saudi Arabia to make massive economic investments over recent decades, in turn generating demand for construction steel. Oil prices dropped in 2014, changing the landscape. Oil and gas spending and therefore drilling activity is down in recent years. Hydrocarbon prices have however rebounded in recent months, with gas especially seeing more demand than there is supply. Since the outbreak of war in Ukraine, these prices have been driven up higher, with oil returning to 2014 levels and boosting industry sentiment. The question is, will this translate into increased drilling investment, or will the longer-term trend of decarbonisation continue to gradually phase out oil demand? Natural gas is seen as a transition fuel and should therefore enjoy stronger investment prospects in the medium term. A significant number of welded pipe makers have been established in Saudi Arabia to serve the oil & gas sector, while the Middle East’s only two seamless pipe makers are both based in Saudi. Will they find continued demand from the oil & gas sector, or turn to other applications such as water or new streams such as hydrogen transportation? Analysts believe the outlook for Saudi gas demand is promising due to increased domestic consumption. What is the outlook for the oil & gas market going forward? Given the reduced oil & gas investment, does the sector still require as much steel as before? Do Saudi steel suppliers offer the products, grades and qualities required by the local oil & gas industry? Are they prepared for a potential future switch to hydrogen transportation? If not, what has to be done? This session will examine these issues and more.

Key Themes:

1. Do Saudi suppliers offer the required grades and qualities needed by the oil & gas sector?
2. Prospects for Saudi natural gas market and consequences for steel suppliers
3. How long will high oil prices last?
4. Saudi oil drilling/capital expenditure outlook
5. Prospects for pipe demand from investment into natural gas as a transition fuel
6. How can the pipe making industry prepare for the transition to hydrogen use?
7. Saudi pipe capacity investment overview
8. Seamless pipe requirement in Saudi market
9. Pipe making technology options available for Saudi mills to improve supply to oil & gas sector