- Amid volatile oil markets driven by geopolitical tensions, Accenture’s EMEA energy chief asserts that the leading companies will be those capable of making rapid choices.
RIYADH – Oil prices dropped more than 7 % on Monday after diplomatic talks between Iranian and Qatari officials raised expectations of a de‑escalation in the U.S.–Israel conflict, according to Reuters. By Tuesday, prices began to recover.
Brent crude climbed to $106.13 per barrel after the United States attacked Iran’s Qeshm Island; a senior Iranian official indicated to Reuters that negotiations were still far from a resolution. The sharp volatility, occurring amid a conflict that has disrupted Middle East oil supplies for eight months, underscores the need for companies to reassess the drivers of their value.
Historically, scale – measured by volume, low costs, and tight operational control – determined industry success.
Andrew Smart, senior managing director and head of EMEA energy at Accenture, told Arab News that the traditional playbook is being rewritten.
He explained that historically the fundamental drivers were volume, cost efficiency, integration, disciplined behaviour and organisational control.
Smart identified three new value drivers.
The first driver is structural optionality – the capacity to pursue multiple strategic paths. The second is organisational agility, defined as the speed at which those strategic choices can be implemented. The third is product differentiation, reflecting the product’s criticality to key customers.
He noted that these three factors have become the primary determinants of value creation over the past two to three years, and especially this year.
This year has put all three drivers to the test. Reuters reported that U.S. officials characterized Monday’s strikes as defensive actions intended to prevent Iranian attacks on commercial vessels transiting the Strait of Hormuz. When a vital trade route is threatened, swift course adjustments are essential for producers and buyers throughout the Gulf and beyond.
Smart explained that industry leaders repeatedly ask what tangible impact artificial intelligence actually delivers.
He responded that artificial intelligence is fundamental to all three shifts.
AI places the appropriate data and decision‑making insight into the hands of the right stakeholders at the precise moment, enabling swift actions that generate real value.
In practice, executives can act on up‑to‑date information rather than waiting for reports to ascend the corporate hierarchy. In a week where prices may plunge dramatically one day and partially rebound the next, such speed can determine whether a firm captures value or forfeits it.
AI links these three factors: rapid decisions are valuable only when multiple viable options exist, and those options are meaningful only when the firm can discern which ones customers prioritize. High‑quality data underpins both.
Beyond short‑term responses, Smart highlighted that AI also facilitates long‑term strategic planning.
AI enables deeper scenario analysis, exploration of future options, and more informed critical decisions that reduce risk and enhance flexibility for the future.
He concluded that the same technology empowering traders to react to weekly market moves also equips corporate boards to evaluate strategies over the next decade. Consequently, short‑term agility and long‑term resilience stem from a common data foundation.
Smart argues that winning companies will be those that maintain flexible options and leverage AI to swiftly select the optimal path.
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