There are several mega trends that are fundamentally reshaping the entire energy industry in the next 15 years. These include increased oil price volatility that create investment challenges, energy consumers that are driving the transition to a low carbon and efficient energy world, supply constraints that are triggered and controlled by government and geopolitical events, while also stimulating demand for green energy.
Even though the oil and gas industry still dominates the energy sector, there’s major future risk to consider. Due to technology and consumer behavior, increasing competition is inevitable. It is estimated that industries such as wind, natural gas, and solar energy will increase in market share in the future. Oil and gas companies have to take precautions now, evaluate their business risks and properly manage and capitalize on their plans to mitigate the impending market shift.
It is critical for downstream oil and gas companies to create sustainable growth and consistent profitability. In order to have the competitive edge, you must seize strategic opportunities and focus on building advanced analytics and innovative problem solving.
In terms of oil and gas upstream, the oil price volatility increases the competitive pressure and subsequently drive out marginal horizontal upstream competition. Upstream oil and gas companies need to discover innovative ways to increase utilization and yield of assets while also cutting costs. This can correspondingly be accomplished by advancing electrical submersible pumps and optimizing the steam to oil ratio.
It is a struggle to achieve operational excellence in a mature environment with aging assets. Costs of supply and procurement are rising while production efficiency is corroding. Market forces continue to create a volatile environment for the oil and gas industry. Which is why there’s a call for new business models, risk management plans, cost optimization, and advanced analytics.
LEADing Practice answers this call across the entire value chain to meet the challenges of today and tomorrow. We will help you to find new routes to sustainable growth by providing you with all the tools you need.
The tools that we equip you with are our standards. These standards are used to help you replicate and reuse industry practices, best practices and leading practices.
We differentiate as the only company specialized to enable the oil and gas industry to apply standards and patterns of success to meet the disruption and challenges in every segment of the oil and gas industry;
- upstream (exploration and production),
- midstream (transportation, refining and processing); and
- downstream (distribution and sales).