Plain sailing for Gulf offshore
Saudi Arabia and the UAE are pressing on with offshore drilling activity despite the slump
OFFSHORE rig activity in the Gulf is standing up surprisingly well to the stiffening breeze of austerity from a sustained period of low global oil prices. Saudi Arabia and the UAE in particular continue to offer opportunities for service companies that are fast vanishing in other corners of the globe. Saudi oil minister Ali Al-Naimi insists that while the kingdom is being forced to take a range of cost-cutting measures, energy-sector development plans will continue. It is understandable, he said in October 2015, that “when prices fall, companies and governments reduce expenditure. But sustained and steady investment is important for an industry with such long-term horizons.” His business-as-
Also in this section
5 March 2026
Gas is a central pillar of Colombia’s energy system, but declining production poses a significant challenge, and LNG will be increasingly needed as a stopgap. A recent major offshore gas discovery offers hope, but policy improvements are also required, Camilo Morales, secretary general of Naturgas, the Colombian gas association, tells Petroleum Economist
4 March 2026
The continent’s inventories were already depleted before conflict erupted in the Middle East, causing prices to spike ahead of the crucial summer refilling season
4 March 2026
The US president has repeatedly promised to lower gasoline prices, but this ambition conflicts with his parallel aim to increase drilling and could be upended by his war against Iran
4 March 2026
With the Strait of Hormuz effectively closed following US-Israel strikes and Iran’s retaliatory escalation, Fujairah has become the region’s critical pressure release valve—and is now under serious threat
