Oil and Gas: IRE’s 2020 review

As we start afresh with a new year, we take a look back at 2020 and the positives we saw at IRE and in the wider industry, and what we’re looking forward to in 2021.

2020 in oil and gas

With one of the largest downturns in history, oil and gas certainly took a hit from many angles last year. However, 2020 also saw new discoveries which point towards growth in the future.

Industry downturn

The supply and demand of oil is determined by the movement of people and industry. So when a global pandemic hit and the world came to a halt seemingly overnight, the industry saw the largest downturn in over a century.

A contributing factor to the downturn and the dropping price of crude oil was the excessive stockpiling. This meant that while the industry could continue to produce, storage was limited. Desperate measures such as using decommissioned oil line and rail and road tankers were taken to find low cost storage methods.

Oil prices started at $64, and eventually fell to $18 which put a lot of strain on the industry, resulting in rig downtime and mass redundancies to cut costs. However, we have started to see some recovery in North America, with oil prices at $47 in December 2020. This increase is a positive sign in one of the most challenging times in the industry’s long history.

New discoveries

While the downturn gripped the headlines, the industry had some silver linings in the form of new discoveries of natural resources in the Middle East .

For the first time in over three decades, new onshore gas and condensate was discovered in Sharjah. This is a huge victory for the UAE and the wider region as it guarantees reliable gas supplies in the future. It will also create new partnerships and jobs in the region and meet the energy demand for the UAE’s growing industries and residents.

2020 at IRE

Like our colleagues across the industry, we were impacted by the pandemic. However, we had plenty of positives to celebrate as we found some opportunities for growth thanks to our hardworking team, loyal customers and partnerships.

Team growth

To assist our customers in navigating challenging times, we expanded our team of experts as we hired Account Manager Dejan Salamunovic, Accountant Ahmed Raza, Business Development Manager Eric Cardoso and Well Services Lead Kevin Robertson.

Increasing our services and expertise when customers need it most was a vital move that allowed us to be as supportive as possible and helped our customers to meet any changing needs.

We also had two weddings as our General Manager Andrew, and Operations Engineer Divin tied the knot with their partners. From the whole team, we offer congratulations and wish them a lifetime of happiness!

It was also a year of milestones for our long-serving team members, with our Quality and Process Supervisor Fredelyn Lape being with our company for seven years. Divin and our Accounting Manager Salman Murtuza both reached the five year mark.

Facility

2020 marked two years in our Jebel Ali Free Zone Facility. We made the most of having space in a fantastic spot as we diversified our offering for customers and offered storage space for rent. Through this, we’ve had the opportunity to form new relationships in the industry, and we’re excited to offer the space in 2021 also - please reach out to us if you’re interested!

Handling a pandemic

As a team that likes to be hands on with our partners and customers through facility visits and face to face meetings, having our movement restricted wasn’t tough for all of us.

We immediately focused on how we could stay connected while working from the safety of our homes, using tools such as Zoom to ensure our team were working just as effectively as they would in the office. We couldn’t be more grateful for their hard work and dedication to working tirelessly to support the business.

We have also had the opportunity to find new ways of working. In our company’s history, we’ve always had the whole team in the office. Being unable to do this allowed us more flexibility than ever before. Without the limitations that travel brings, we have been able to mix up our working hours a little as we operated from the comfort of our own homes. As we evolve as a company, it could be an opportunity to allow our team more freedom beyond the office.

Services

Strong partnerships have always been key to our success, which is why we were delighted to bring on board two new partners in 2020; Ranger Oilfield Products and Accumulators Inc.

Constantly diversifying our offering to our customers with the introduction of product lines of high quality oilfield equipment including hydropneumatic accumulators and ST-80 Iron Roughnecks, allowed us to deliver quickly to our customers as we’re always well-stocked on the ground right here in Dubai.

2021 predictions

While 2020 was a challenging year, we’re remaining positive about what we expect 2021 to bring our way.

Expansion at IRE

As the borders have reopened, we’re looking forward to kicking off our year in a big way by securing a facility and expanding our operations into Saudi Arabia. The new HQ will allow us to broaden our offering further as we plan to build a new warehouse in Dubai to support our customers in the energy sector by having more stock and a wider range of inventory on the ground.

50 years of UAE

Our home is set to be on the world stage in 2021 as we celebrate the UAE’s Golden Jubilee! As we approach the UAE’s 50th National Day, we’ll be reflecting on the development we’ve seen around us, and be inspired to continue to innovate alongside our partners.

Pressures faced by the industry

Bouncebacks are slow but steady in the energy sector, and we’re expecting oil prices to remain under pressure for the foreseeable future. We’re speaking to our customers every single day to see where we can offer them value. Our aim is to continue the strong growth we’ve been working towards for the past five years, and look forward to a stronger 2021.

If you’d like to know more about our equipment and services, please get in touch!