Boom to bust – a familiar cycle for oil and gas commodities– has once again plagued the global industry. Oil prices fell by over 50% in 2015 and natural gas prices followed suit. Excess supply in the market, and declining demand, particularly in China, created one of the worst downturns in the sector’s history. Finally, prices are starting to show some sign of recovery, as the relationship between supply and demand approaches equilibrium. But will this upturn continue? Where will prices even out, and how soon? These are the burning questions of the day. While global demand for affordable and reliable energy is expected to increase for the foreseeable future, the world is rapidly changing. Navigating the future is becoming increasingly challenging in a more complex global market, where technological breakthroughs, changing consumer attitudes and many other factors are paying a role. Our oil and gas professionals understand the challenges faced by our clients, along with the uncertainties and risks they have to manage, and are able to provide the help that companies need to succeed now and in the future.
Instability continues to be a major concern around the world. The global economy is far from robust, and the once rapid grown in BRIC countries has now slowed. Geopolitical tensions continue to play a role throughout much of the Middle East, Africa and Asia, as well as Eastern Europe. Terrorism and cyber-security breaches can happen anywhere at any time. The regulatory environment is also in transition, and oil and gas companies are being challenged to lower their carbon footprint around the globe. On many fronts, oil and gas companies are facing obstacles beyond their control which are having an impact on their business.
Besides external factors that complicate the business, oil and gas companies continue to face internal challenges. Talent shortages, rising costs and capital constraints are some of the chief concerns. At the same time, global trends are impacting where and how the business will grow or decline.
The industry also is encountering social and behavioural changes. Urbanization, the growth of digital communication and social media, talent shifts and a host of other factors need to be addressed by the industry in terms of where and how they do business. The oil and gas industry wants to improve its public image and reduce scepticism, and monitoring social and behavioural changes will be an important step in this process.
PwC is a leading advisor to the global oil and gas industry, and works with every segment of the business - from oilfield services to upstream, midstream and downstream - to provide business solutions tailored to meet your needs. We have been helping oil and gas companies to succeed for over 100 years. We look forward to the opportunity of working with your company.
Thanks to our knowledge and expertise in the oil and gas industry, we can offer you services such as:
How are you preparing for changes in the oil and gas sector? We would be happy to discuss this further with you. Would you like to set up an appointment for a free consultation? If so, please contact us.
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