The region’s brant prices have ranged between $30 and $40 a barrel through this year and the next. The report noted, “With regards to the decline in oil prices, Apicorp expects that it will lead to a restructuring of the oil and associated gas industry, as well as an accelerated closure of the lowest efficiency parts of the capital stock, and mergers and acquisitions (M&A).”

In fact, it is predicted that recovery in the sector’s investments could take two to three years. That said, it is reported that the GCC has registered a 2.3 percent increase in committed investment compared to 6 percent for the entire region.

Dr. Ahmed Ali Attiga, CEO of Apicorp, told the media, “The impact of COVID-19 is already deeper and longer-lasting than past downturns. Indeed, the profound restructuring in oil and gas will hit energy investments for a potentially long period of time, sowing the seeds of supply crunches and price volatility. Therefore, we expect a W-shaped recovery for the MENA region.”

However, investments in gas are expected to increase pace over the next five years on the back of Opec producers’ decision to reduce output.

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