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Digital Transformation might be beneficial for the oil and gas industry, according to Preston businessman Arif Patel

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Digital Transformation might be beneficial for the oil and gas industry, according to Preston businessman Arif Patel

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Oil and gas firms are investing heavily in technology to improve energy exploration, production, transportation, and distribution. Words like automation, datafication, and digitalization are becoming buzzwords in the industry as businesses seek to maximize performance and save costs. The Fourth Industrial Revolution, according to Preston Trading firm founder Arif Patel Preston UK, Dubai, is about to start as digitization transforms how we communicate, work, and live. And we ought to put more effort into altering our perspective on how we conduct business in this new normal environment.

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On the reputation forefront of Arif Patel, London was the another city of the UK where he thrived as businessman and created a better place for many people as philanthropist.

Arif Patel established his business at a young age in Dubai and worked his way up to become a well-known name in the mining, engineering, and oil and gas exploration industries. Oilfield services, engineering, mining, and exploration and production of oil and gas are the areas of expertise of his Preston Trading firm.

Arif Patel Preston UK, Dubai, based businessman who has worked in the industry for many years, has a strong view on the expansion and development of the oil and gas industry, and believes that digitalization can improved and upgraded the production and regulatory conditions. Additionally, digital transformation can entail the gathering and analysis of a significant quantity of data to provide insightful information that can be used to optimize operations, decrease downtime, and enhance safety. Increasing the industry's responsiveness, agility, and ability to respond to shifting market and regulatory situations while minimizing its environmental effect is the aim of digital transformation.

Oil and gas firms need specialized knowledge in digital technologies and the energy sector to effectively reap the benefits of digitization. As per Arif Patel, Dubai "companies should also be aware of the essential business possibilities and problems that digital technology may solve, as well as how to effectively manage the cultural and organizational changes brought on by the digital revolution".

Price volatility, carbon reduction, and change management are three crucial concerns that the oil and gas business must solve. Price volatility in the oil and gas sector may be reduced with real-time analytics that assist better analyze market movements. The automated approach also lowers expenses, streamlines processes, and boosts financial stability. By facilitating the adoption of renewable energy sources, lowering energy consumption, and streamlining processes to reduce waste and emissions, the use of digital technology contributes significantly to the reduction of carbon emissions.

By enabling businesses to adopt new technology, digitalization in the oil and gas sector also makes it easier to address the difficulty of change management. Additionally, it enhances communication between various departments and stakeholders as well as simplifies operations. In general, it enhances communication, lowers expenses, and boosts responsiveness to market changes.

Apart from being an extraordinary businessman Patel is a philanthropist too. He believes that giving back to society is the most satisfying and passionate feeling in the world. According to Arif Patel, situation and circumstances around London and other cities of the UK that make me go down the lane of Philanthropy because of the diversity it has. London is the place where I started my philanthropy work and gained immense appreciation.

Patel's urge to contribute good fortune to society leads him towards Philanthropy and now he firmly believes that digital automation and hi-tech advancement in the oil & gas industry will reduce its vicious impact on the environment.

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Arif Patel Preston hails the growth of oil & gas sector

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The Oil and Gas industry needs a boost from digital transformation that can entail the gathering and analysis of a significant quantity of data to...

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Energy sector dominates growth indices in latest rebalance

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Energy sector dominates growth indices in latest rebalance

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The annual rebalance of the S&P Dow Jones Indices (SPDJI) range saw a big rotation of energy stocks into its growth indices following a bumper year of returns for the sector.

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The annual rebalance of the S&P Dow Jones Indices (SPDJI) range saw a big rotation of energy stocks into its growth indices following a bumper year of returns for the sector.

Energy was the stand-out performer of 2022, with the S&P 500 Energy sector returning 66% last year, meaning it now has the largest sector weighting in the S&P 500 Pure Growth index at 30.5% following the December rebalance, up from just 6.1% a year earlier.

Meanwhile, energy has fallen from 10.4% to 4.6% in the S&P Pure Value index, while tech more than doubled from 3.9% to 8.4%.

SPDJI's 'pure' indices range is weighted by style score versus the float market capitalisation of the S&P growth and value indices.

However, the energy sector also makes up 8% of the market-cap weighted S&P 500 Growth index, up from 1.4% before the rebalance, its largest upward reweighting since 2009.

Hamish Preston, director of US equity indices at SPDJI, said: "While the 8% weighting is not unprecedented - energy accounted for 12% of the index in 2011 - the magnitude of the change is unusual.

"Energy was one of two S&P 500 sectors to gain last year, utilities being the other, while on the other end of the spectrum communication services, consumer discretionary and tech are all down by 30% or so."

The sharp swing can in part be attributed to the momentum factor accounting for a third of the SPDJI's growth factor definition, alongside three-year sales per share growth and a three-year ratio of earnings per share change to price per share.

Sekar Indran, senior portfolio manager for equities, at Titan Asset Management, said the energy's rise was also boosted by strong earnings and revenue growth rates following several supply-side shocks last year.

"The momentum effect had a large impact given the 12-month price move," he said. "Additionally, the energy sector experienced a massive boost to its earnings and revenue growth rates from supply-side shocks and the subsequent rally in oil prices."

Despite this, energy remains one of the cheapest sectors on aggregate, with no other sector recording a lower price-to-earnings multiple.

"Much of the energy sector for example still trades on cheap multiples based on price-to-earnings and free cashflow yield so they understandably would be surprised to see such a large allocation within a growth index," he added.

It comes as value indices vastly outshone their growth counterparts over 2022, and while energy was the standout performer, other defensive sector plays including utilities, consumer staples and healthcare also saw their weights cut in the S&P Pure Value index following strong outperformance.

Utilities fell by 4.7%, while consumer staples and healthcare dropped by 2.6% and 4%, respectively.

Meanwhile, concerns about overvalued growth sectors weighed on markets with sectors such as communication services and information technology down 40% and 28% over 2022.

As a result, information technology has seen its weight cut by almost two-thirds in the S&P Pure Growth index following the rebalance, from 35.6% to 12.9%.

The huge swing between the value and growth indices highlights how important it is for investors to understand the methodologies behind the index construction.

Indran added: "While we do not have any exposure to these particular indices, we always must be aware of index rebalances occurring in any of the investments we hold and the impact they could have at a portfolio level."
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Energy sector dominates growth indices in latest rebalance

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Huge performance dispersion has led to large rebalances across rules-based indices

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Business 'ready to work towards wellbeing economy'

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Business 'ready to work towards wellbeing economy'

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Business groups are willing to work with the Scottish government on its journey to a "wellbeing economy", says the cabinet secretary tasked with re-setting relations with them.

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Business groups are willing to work with the Scottish government on its journey to a "wellbeing economy", says the cabinet secretary tasked with re-setting relations with them.

Neil Gray said trade organisations were reassured that government would back business to succeed and to grow.

But that support comes on condition that it is with a social purpose.

The aim of turning the economy towards wellbeing more than profit was embraced by Nicola Sturgeon as first minister.

Humza Yousaf has pinned his approach to the economy on going further on this journey.

But in an interview with the BBC, Mr Gray - who is cabinet secretary for the wellbeing economy, fair work and energy - said the priority of re-setting' the relationship with business, following Ms Sturgeon's leadership, requires ministers to understand that private sector firms need support and to be consulted at an early stage on new policies.

He was speaking ahead of a gathering in Iceland of representatives of countries committed to a wellbeing economy.

These also include New Zealand, Wales and Finland, with observers at the conference from Canada and Luxembourg.

In Scotland, several controversial policies have had to be stopped or postponed after business complained they were impractical and expensive.

They included the Deposit Return Scheme for drink containers, and a plan to ban advertising of alcohol, while the creation of a National Care Service has been paused. A review of business rates has been secured.

Ambitious targets

Mr Gray said: "The concept of what we're looking to achieve from our wellbeing economy approach is one business understands - with a strong business landscape, which allows business to grow and achieve good results, but to do so for a purpose, a fair work agenda, tackling child poverty, and looking after our planet".

Privately, some business leaders are sceptical about the requirement to boost employee pay levels, higher earners being required to pay more in personal tax, and requiring firms to meet ambitious environmental targets ahead of their competitors in other countries.

This is seen as a distraction from the disappointing rate of economic growth under the SNP government, which made that its top priority when it came to power 16 years ago.

Mr Gray said the needs of business to be profitable and competitive will have to be balanced with regulation and tax.

"That is what our New Deal for Business group is trying to achieve - to ensure we have strong relationships across the business community, a practical and pragmatic approach to regulation, to ensure we involve business at as early a stage as possible, and ensuring there is a good understanding of where the taxes we're all paying are going to - good services, supporting our people, ensuring they are healthy and can continue to contribute through employment.

"This is a virtuous circle we can achieve, and I'm very pleased with the response the business community has come back with thus far."

What is a wellbeing economy?

Cabinet secretary Neil Gray defines a wellbeing economy as "an economy that is fair, green and growing, to make sure we have a strong business landscape, to generate growth and do so for a purpose - and that is to ensure our collective and individual wellbeing, to ensure we're looking after one another".

He says there does not have to be a tension or trade-off between conventional economic growth and a shift to green energy and reduced inequalities. But others say there are choices and challenges in which goals of a wellbeing economy get priority. Higher tax to tackle inequality through redistribution, and tougher environmental regulation, for instance, can usually be expected to lower growth.

The Wellbeing Economy Alliance defines it as "an economy designed to serve people and planet, not the other way around. In a wellbeing economy, the rules, norms and incentives are set up to deliver quality of life and flourishing for all people, in harmony with our environment, by default".

The country representatives gathering in Iceland this week are taking diverse approaches.

Experts note that Finland is seeking to improve public health in a way that helps boost the economy.

Iceland has a focus on inequality, notably around gender and on economic democracy. After turbo-charged corporate borrowing landed its economy in severe difficulties after the 2008 global bank crash, it has moved to a more inclusive approach to making decisions about the island nation's economy.

In New Zealand, under former prime minister Jacinda Ardern, the Wellington government pushed budget control out from central government, giving more power to local communities to participate in spending choices.

A distinctive approach in Wales is to weigh current spending decisions with the impact on future generations. A post has been created of commissioner for those future generations, to speak on their behalf.

Among the approaches taken in Scotland is Community Wealth-Building - an approach that keeps public spending within communities, sourcing from local firms and building up locally-controlled assets. North Ayrshire has been a pioneer, along with Preston in Lancashire.

The Scottish government's strategy for economic transformation, published by Nicola Sturgeon's team of ministers last year, was assessed by the Wellbeing Economy Alliance of pressure groups and academics as "deeply disappointing".

It said there was "partial progress" on only four of the 10 tests it set for an effective strategy, and no progress on the other six.

Mr Gray said one of his first meetings after being appointed to his cabinet role by new first minister Humza Yousaf was with specialists in the wellbeing economy, indicating it will take time to meet their objectives.

He said "we need to look at" the strategy for economic transformation and to be focussed on delivery of its goals, but that requires him to involve the business community.

"One of the first things is that we reset our relationship with the business community, making sure the first principles of engagement are right, and that we're working in alignment on trying to achieve economic success.

"Through the products of that economic success, we can re-invest into areas of social policy, narrowing child poverty, ensuring we are reaching our Net Zero objectives and maximising the people we have, not just in employment, but in good, well-paying jobs, ensuring we are at least paying the real living wage."

'Cack-handed'

He defended the Scottish government's preference for blocking new oil and gas field development unless there are strict limits on environmental impact.

Some in the oil and gas sector are sceptical about the "just transition" from fossil fuels to green energy jobs.

Mr Gray said that wind-down for oil and gas workers should not leave them behind, adding "not just the workers, but the energy companies currently involved in oil and gas. Their investments will be incredibly important in achieving that net zero ambition".

Under Sir Keir Starmer's leadership, Labour is planning to take a harder line against new oil and gas drilling. The SNP cabinet secretary said the Labour leader's approach was "pretty cack-handed", requiring him to row back on the commitment to green energy investment and with "mixed messages on oil and gas".

"It just goes to show that Westminster parties don't understand Scotland or the Scottish economy," said the Lanarkshire MSP. "It's going to be really important that politicians at UK level are clear about what they're trying to achieve with our oil and gas sector and the just transition."

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Business 'ready to work towards wellbeing economy'

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The government is looking to work with industry to turn the economy towards wellbeing more than profit .

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The oil and gas industry is growing, according to Arif Patel Preston

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The oil and gas industry is growing, according to Arif Patel Preston

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The Oil and Gas industry needs a lift from computerized change that can involve the get-together and investigation of a critical amount of information to give smart data. Arif Patel, Preston UK, Dubai based businessman upheld this change to upgrade activities, decline free time, and improve security.

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On the reputation forefront of Arif Patel, London was the another city of the UK where he thrived as businessman and created a better place for many people as philanthropist.

Arif Patel established his business at a young age in Dubai and worked his way up to become a well-known name in the mining, engineering, and oil and gas exploration industries. Oilfield services, engineering, mining, and exploration and production of oil and gas are the areas of expertise of his Preston Trading firm.

Arif Patel Preston UK, Dubai, based businessman who has worked in the industry for many years, has a strong view on the expansion and development of the oil and gas industry, and believes that digitalization can improved and upgraded the production and regulatory conditions. Additionally, digital transformation can entail the gathering and analysis of a significant quantity of data to provide insightful information that can be used to optimize operations, decrease downtime, and enhance safety. Increasing the industry's responsiveness, agility, and ability to respond to shifting market and regulatory situations while minimizing its environmental effect is the aim of digital transformation.

Oil and gas firms need specialized knowledge in digital technologies and the energy sector to effectively reap the benefits of digitization. As per Arif Patel, Dubai "companies should also be aware of the essential business possibilities and problems that digital technology may solve, as well as how to effectively manage the cultural and organizational changes brought on by the digital revolution".

Price volatility, carbon reduction, and change management are three crucial concerns that the oil and gas business must solve. Price volatility in the oil and gas sector may be reduced with real-time analytics that assist better analyze market movements. The automated approach also lowers expenses, streamlines processes, and boosts financial stability. By facilitating the adoption of renewable energy sources, lowering energy consumption, and streamlining processes to reduce waste and emissions, the use of digital technology contributes significantly to the reduction of carbon emissions.

By enabling businesses to adopt new technology, digitalization in the oil and gas sector also makes it easier to address the difficulty of change management. Additionally, it enhances communication between various departments and stakeholders as well as simplifies operations. In general, it enhances communication, lowers expenses, and boosts responsiveness to market changes.

Apart from being an extraordinary businessman Patel is a philanthropist too. He believes that giving back to society is the most satisfying and passionate feeling in the world. According to Arif Patel, situation and circumstances around London and other cities of the UK that make me go down the lane of Philanthropy because of the diversity it has. London is the place where I started my philanthropy work and gained immense appreciation.

Patel's urge to contribute good fortune to society leads him towards Philanthropy and now he firmly believes that digital automation and hi-tech advancement in the oil & gas industry will reduce its vicious impact on the environment.

# data[].attributes.attachment_link.title
Arif Patel Preston hails the growth of oil & gas sector

# data[].attributes.attachment_link.description
The Oil and Gas industry needs a boost from digital transformation that can entail the gathering and analysis of a significant quantity of data to...