August 5, 2021

6 thoughts on “Is The Oil & Gas Industry Really Hopeless?

  1. In 70s, Keppel and Sembawang were doing well in shipbuilding; then transit from sunset shipbuilding in Singapore to O&M. After O&M, can they evolve successfully and reward long-term shareholders?

    During Keppel Retail shareholders Day; I saw so many seniors there! Could be very long-term shareholders?

    1. Hi CW,

      In the old days, Keppel is lucky to have Mitshibushi (Japan) and Far East Levingston (FELS from USA) leaving behind the ship and rig building technologies to us. 2014 oil crisis drove out so many people with expertise. Not sure how much is left to evolve?

      2002 to 2014, Keppel is still doing well in shipbuilding (SB). The transition is from Merchant ships (old days 80s) to Offshore ships (2002-2014) that is making Keppel lucrative. But still SB. That division is called Keppel Singmarine. Keppel Fels is the Rig building back then. Then you have FPSO conversion and repairs (Keppel Shipyard). Now they combined.

      I know there are many long term loyal shareholders of Keppel. It is actually a very good company during the good times of the cycle. Oil and Gas is cyclical as I mentioned in previous article, n hence companies in cyclical industry is better to be private owned so that they can invest and plan long term. Listco need to satisfy the thirst of investors even during down cycle.

      Hence, personally I think the best option is to exit O&M and privatize KOM! It will be good for KOM and good for Keppel shareholders

  2. The problem is SG tries to be a hub of everything and ended up good for nothing. We gave up on semiconductor industry prematurely whereas the Koreans and Taiwanese pressed on and scale up the technology ladder. Now semiconductor industry is booming again but alas many talented engineers have already left the industry due to our lack of persistence. Hoping for instant success by flooding the industry with loads of foreigners is merely wishful thinking.

    1. Hi Wb,

      I agree with you. It is very difficult that we are good in something, because we want the fastest result in the shortest time. This can only achieve at the expense of sustainability over long term! Therefore, we will never be good in any industry or trade.

      We can only keep on be friendly to foreigners and attract them here. But eventually this method will not work and we will be at the end of the road.

      We governed the country like a company (meritocratic and very little compassion), and cares more about current or recent results. Survival is often use as a reason to “scare off” people, who does not know there are countries who are small and yet have compassion and yet doing well.

      People in SG whether citizens, PR or foreigners are tools to help the country prosper. The result that is imprinted in the year-end report card is all that matters. Once, you are unable to help the country prosper even if you used to do it, you are considered “inefficient resources”. Then you are disposable!

      The problem is majority of Singaporeans do not recognise that too, because we too being in the same environment. We also only want instant success! Anyway, below articles are relevant to this topic.

      https://www.rolfsuey.com/2020/09/is-singapore-economy-in-danger-for-long.html

      https://www.rolfsuey.com/2020/09/is-singapore-economy-in-danger-for-long_13.html

      https://www.rolfsuey.com/2020/09/singaporeans-dont-lack-entrepreneurial.html

  3. Hi,

    Make hay while the sun still shines. Such approach is relevant for one in any business and industry.

    WTK

    1. Hi WTK, make the hay while the sun still shine is correct. But make the hay only once and think that the sun will not shine again, and not prepared or improved before the next sun rise is still relevant?

      Anyway Sun rise and Sun set. Have you ever seen our Sun set and never rise again?

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