Asia will remain the economic driver across the globe despite the sliding oil prices, said Petroliam Nasional Bhd (Petronas) president and chief executive officer Datuk Wan Zulkiflee Wan Ariffin.

He said the time had come for the oil and gas (O&G) sector to look forward and take timely and deliberate action in facing current challenges.

The global O&G industry faced harsh realities, with major players taking turns announcing significant drops in revenue and profit in the first quarter alone, he said.

Globally, industry layoffs had exceeded a quarter of a million, while close to US$50 billion (RM200 billion) worth of projects had been cancelled or deferred, and potential divestments continued to make headlines, he added.

“To be standing here representing Petronas today is not reflective of an impervious immunity to the impact of the current industry challenges, but rather signals our determination to look forward and take timely, deliberate action in the face of these challenges.

“For the O&G industry currently adapting to a fundamental structural shift, the drive for excellence will be critical to adapt to the challenges at hand and ensure long-term robustness,” said Wan Zulkiflee in his keynote address at the Offshore Technology Conference Asia 2016 yesterday.

The theme of the four-day conference is “Excellence in Asia”.

He said the region was adapting to the fundamental shift in the new O&G environment.

“Asia is destined to play a leading role on the global economic stage.

Today, it accounts for 40 per cent of the global economy, and given its dynamism and vitality, will potentially deliver two-thirds of global growth over the next four years.

“Notwithstanding the current slowdown, Asia will continue to thrive, spreading its sphere of influence across the globe.

During the 1997-1998 Asian financial crisis, Western economies suffered little from the ripple effects.

Today, however, they are no longer immune to Asia’s oscillations.”

Wan Zulkiflee said the local O&G industry had gained savings of up to RM2.44 billion while Petronas had saved RM1.4 billion last year through cost rationalisation measures.

Earlier, Prime Minister Datuk Seri Najib Razak said Petronas showed the resilience of a world-class organisation by continuing to chart major milestones while remaining focused on sustainability.

“The continuing supply of United States shale oil, Organisation of the Petroleum Exporting Countries determination to hold onto its market share and Iran’s re-entry to the market are the reasons why the prices are likely to remain low.

“Petronas has been forced to employ tough measures to ride out times that are demanding for us all.”

The conference has attracted 15,000 energy professionals representing 2,500 organisations and 60 countries.

The conference will provide insights into overcoming technology gaps and maintaining growth through cost leadership, and reflecting on successful leadership in other industries, current trends such as cost reduction through innovation, oil price volatility and implications to the industry, next-generation workforce and floating liquefied natural gas.

There will also be sessions on major regional projects, market outlooks, offshore aspects of geoscience, deepwater, subsurface and surface engineering, and facilities, construction and others.