The energy industry’s business model is rapidly changing with many disruptors. More collaboration across diverse industries is essential to adapt to the new shape and form of doing business today.
Wan Zulkiflee Wan Ariffin, PETRONAS President and Group Chief Executive Officer, called for collaboration in the form of more non-traditional partnerships during the Global Business Leaders Session on Widening the Partnership Circle: Collaboration, Innovation, Policy Formation, Globalisation yesterday. In response to these new challenges, the potential to reach widely and extend into untapped and uncharted avenues for collaboration, across lines and across industries, is what will continue to help the industry weather the shift in the industry landscape and find the solutions to effectively and sustainably harness oil and gas resources to meet growing global demand, says Petronas.
Structural business change is happening and examples of this can be witnessed in the Far East, for example, where traditional long-term LNG consumers are now becoming sellers. The whole market has changed and as an industry, we need to adapt to this new business structure.
In the oil and gas industry, it is therefore critical to find energy solutions that reach out to non-traditional partners as well as traditional collaborations that explore unconventional solutions. At PETRONAS, the company is already making inroads touching a wide range of stakeholders both within and across industries.
We need more partnerships that not only help us reduce cost, gain efficiency and hedge risks but also facilitate shifts in mindset that would provide the impetus for creativity and innovation down unfamiliar paths to find the solutions needed to move forward.
Coupled with a greater demand for sustainable and responsible environmental practices, awareness of the impact of climate change grows globally as consumers become more conscious and demanding of a sustainable way of life. The fossil fuel industry bears the brunt of this responsibility, while balancing the need to deliver energy to meet growing demand. It is now more crucial than ever to extend and strengthen the web of collaboration across industries, with renewed focus and determination, the company added.