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Oil and Gas
In the face of global recession, sharply reduced demand and the continuing uncertainties about the timing and pace of regulation towards eventual decarbonization of the global energy supply, the collective challenges facing management are intense.
We serve most of the world's larger oil and gas companies and contribute to research and analysis of industry issues and trends discussed in various events and conferences where industry leaders share their insights.
- While limiting capital investment may placate shareholders in the short term, failure to replace resources can result in insufficient production to meet long-term demand.
- Regulatory complexity
Global operations demand robust processes, companies may be forced to pass these costs along to consumers
- Counting the costs
Elevated expenses squeeze margins: most current costs are a function of past investment and the levels of ongoing production activities
- Talent shortages loom
Companies must devise strategies for maintaining access to the talent they need over the long term
- Wave of industry mergers and acquisitions
NOCs are showing a growing appetite to expand overseas while smaller producers, independents and downstream providers with good sized portfolios need strategic growth
- Reserves are getting harder to reach and extract
Over the longer term, producers must create a business case for drilling in harsher climates and extracting nonconventional and "difficult" deposits since the world would run out of reasonably priced oil in the next 50 years