’Internet of Things’ can generate $13.3 trillion revenue

Updated 19 December 2015
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’Internet of Things’ can generate $13.3 trillion revenue

RIYADH: The Internet of Things (IoT) World Forum (IoTWF) in Dubai was a huge success with more than 2,000 attendees from across the world getting awakened to the IoT possibilities, which have the potential to generate revenue of $13.3 trillion.
The event featured visionary leaders and experts from top companies such as Etisalat, Visa, Intel, Siemens AG, Rockwell Automation, GE, Schneider Electric to name some.
The 2015 IoT World Forum highlighted three key themes.
The first theme was ‘Awaken’, which highlighted the opportunities across all industries, and helped customers discover the competitive advantages that IoT can bring.
The second theme ‘Activate’ covered laying out roadmaps to IoT deployments.
The third theme ‘Accelerate’ focused on moving the industry forward quickly, and highlighted the roles that service providers and application developers must play in enabling this speed.
In addition to the keynote speeches, the world forum also featured breakout sessions, a hackathon, a startup showcase, and smart-city tours of Dubai.
On the sidelines of the forum, John Chambers, executive chairman of the Cisco board, met with the country’s leadership, key government officials, regional customers and media.
He also delivered the keynote speech on how the IoT is creating a new world of possibilities through digitization.
Anil Menon, Cisco president for Smart & Connected Communities, said: “We have passed the incubation phase, now IoT/smart city solutions are ready to be scaled.”
Menon said: “Cities who scale first will be the winners in an increasingly competitive environment. As host to the 2015 IoTWF, Dubai is rapidly transforming into becoming one of the smartest digital cities in the world connecting the unconnected through the power of intelligent networks.”
To put the growth of IOT in numbers, one can could witness 40 to 80 billion connected objects by 2020, he said.
Smartphone is going to become the central connecting hub to various devices even as every human being will be connected to 10 different objects. Analysts estimate that the revenue potential in IOT is between $1.2 trillion to $13.3 trillion and the most significant investments will go into civic management, health care, education etc.
Inbar Lasser-Raab, Cisco vice president of Infrastructure and Digital Solutions Marketing, said:
“With the number of older people increasing, elderly care will become a crucial requirement… home will become a connected care house.”
The event also saw more than 25 customers presenting on how IoT has changed their business.
Through Dubai Smart City Experience Tours, attendees were able to learn first-hand how Dubai, one of the most digitally advanced cities in the world, has connected transportation, education and health care across the city for a better citizen experience.
A special bus tour was also arranged to the Dubai Design District (D3), which has implemented a wide spectrum of smart solutions and applications.
The IoTWF 2015 also featured a research and innovation symposium, where some of the world’s leading technology researchers and scholars talked about the new frontiers of IoT research enabling a connected world.
The world forum also organized an IoT Hackathon — a learning session and coding competition, which took place on the weekend preceding IoTWF.
The Cisco Innovation Grand Challenge, which recognizes, promotes, and accelerates the adoption of breakthrough IoT technologies and products, brought together six amazing startups to Dubai to compete for their share of $250,000 in cash prizes.
These six finalists, who were narrowed down from 15 semifinalists, got an opportunity to give their pitches live, on stage before the closing ceremony. The winners for the IoT Hackathon and Cisco Innovation Grand Challenge were announced during the event.
Rabih Dabboussi, Cisco UAE managing director and general manager, said: “Talking with government and industry leaders at the Internet of Things World Forum, it is clear that we are seeing a whole new wave of innovations in IoT and digitization that are already transforming business and society today. There was a real sense of excitement at the event as leaders from across many industries inspire one another on what is possible, as well as what’s already been achieved in Dubai’s journey toward its vision of being the smartest cities in the world by 2017.”
Referring to the advancement of technology, Sebastian Saxe, chief information officer of Hamburg Port Authority, said that “The reality is this… the reason we would look for a holistic model is that we have all this business going through the city, but it impacts the citizens. To create a model where we are able to do this without negatively impacting the citizens and the city itself is our goal.”
In his speech, Mohammad Saeed Al Shehhi, chief operating officer, Dubai Design District (d3) said: “We, at Dubai Design District (d3), are very proud to be showcasing some of the real-time Smart initiatives that are being deployed at d3, during the Cisco Internet of Things World Forum.”
He added: “Through these unique and technologically-enhanced initiatives, d3’s creative tenants will benefit by saving on utility consumption, they will receive an enriched customer experience, improved safety standards, and they will be able to tap into effective, real time data analytics that help drive their business forward.”
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Asia’s refining profits slump as Mideast exports surge

Updated 23 February 2019
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Asia’s refining profits slump as Mideast exports surge

  • Since 2006, the Asia-Pacific has been the world’s biggest oil-consuming region, led by industrial users South Korea and Japan along with rising powerhouses China and India
  • However, overbuilding of refineries and sluggish demand growth have caused a jump in fuel exports from these demand hubs

SINGAPORE: Asia’s biggest oil consumers are flooding the region with fuel as refining output is exceeding consumption amid a slowdown in demand growth, pressuring industry profits.
Since 2006, the Asia-Pacific has been the world’s biggest oil-consuming region, led by industrial users South Korea and Japan along with rising powerhouses China and India.
Yet overbuilding of refineries and sluggish demand growth have caused a jump in fuel exports from these demand hubs.
Compounding the supply overhang, fuel exports from the Middle East, which BP data shows added more than 1 million barrels per day (bpd) of refining capacity from 2013 to 2017, have doubled since 2014 to around 55 million tons, according to Refinitiv.
Car sales in China, the world’s second-biggest oil user, fell for the first time on record last year, and early 2019 sales also remain weak, suggesting a slowdown in gasoline demand.
For diesel, China National Petroleum Corp. in January said that it expected demand to fall by 1.1 percent in 2019. That would be China’s first annual demand decline for a major fuel since its industrial ascent started in 1990.
The surge in fuel exports combined with a 25 percent jump in crude oil prices so far this year has collapsed Singapore refinery margins, the Asian benchmark, from more than $11 per barrel in mid-2017 to just over $2.
Combine the slumping margins with labor costs and taxes and many Asian refineries now struggle to make money.
The squeezed margins have pummelled the stocks of most major Asian petroleum companies, such as Japan’s refiners JXTG Holdings Inc. or Idemitsu Kosan, South Korea’s top oil processor SK Innovation, Asia’s top oil refiner China Petroleum & Chemical Corp. and Indian Oil Corp., with some companies dropping by about 40 percent over the past year. Jeff Brown, president of energy consultancy FGE, said the surge in exports and resulting oversupply were a “big problem” for the industry.
“The pressure on refinery margins is a case of death by a thousand cuts ... Refinery upgrades throughout the region are bumping up against softening demand growth,” he said.
The profit slump follows a surge in fuel exports from China, India, Japan, South Korea and Taiwan. Refinitiv shipping data shows fuel exports from those countries have risen threefold since 2014, to a record of around 15 million tons in January.
The biggest jump in exports has come from China, where refiners are selling off record amounts of excess fuel into Asia.
“There is a risk for Asian market turmoil if (China’s fuel) export capacity remains at the current level or grows further,” said Noriaki Sakai, chief executive officer at Idemitsu Kosan during a news conference last week.
But Japanese and South Korean fuel exports have also risen as demand at home falls amid mature industry and a shrinking population. Japan’s 2019 oil demand will drop by 0.1 percent from 2018, while South Korea’s will remain flat, according to forecasts from Energy Aspects.
In Japan, oil imports have been falling steadily for years, yet its refiners produce more fuel than its industry can absorb. The situation is similar in South Korea, the world’s fifth-biggest refiner by capacity, according to data from BP.
Cho Sang-bum, an official at the Korea Petroleum Association, which represents South Korean refiners, said the surging exports had “triggered a gasoline glut.”
That glut caused negative gasoline margins in January.