Never Let a Serious Crisis Go to Waste: How Technology Can Rejuvenate the Slumping Oil Industry


Even in crisis there is opportunity. Nothing more pertinent can be said about the current state of the global oil exploration and production industry. The crisis at hand is a unique opportunity for transformation.
 
The Crisis: A confluence of political, economic, technological and social factors is creating a perfect storm in the oil exploration and production industry. Even with recent increases in crude oil prices, the volatility remains. Analysts estimate that North American oil companies are losing nearly $2 billion a week at current prices. Their long-term debt has soared from $200 billion in 2010 to over $350 billion in 2015. By any measure, the top line and the bottom line of nearly every company across the value chain is under tremendous pressure. This calls for unprecedented interventions: political, economic, and, perhaps most promisingly, technological.
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Sunny Days Ahead for Oil and Gas Joint Ventures


With the price of oil sinking on a daily basis, instability in key areas such as Russia and the Middle-East, a push to develop renewal energy sources and the ghost of the recent market crash still hanging over the major economies of the world, the oil and gas industry is in the midst of uncertain times. However, there is still a clear need and market for oil and gas products and that means that there are opportunities. Well-capitalized companies and private equity players have turned to the oil and gas market seeing opportunities to acquire both companies and assets and to invest in emerging jurisdictions. In order to facilitate these complex investments that can bring together funding from multiple countries, parties can benefit from using investment and joint venture vehicles in international finance centres with which they are familiar and which allow for flexibility of structuring, ease of use and speed of incorporation. The British Virgin Islands (BVI) and the Cayman Islands offer all of these advantages and more and are the jurisdictions of choice for savvy investors.
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Managing the Oil and Gas Workforce for Long-Term Growth


“Recruiting in oil and gas has traditionally been a case of ‘square pegs for square holes’, but as the industry adjusts to a new phase of low oil prices, the importance of a more sustainable resourcing strategy with a long-term outlook becomes clear.”, says Petroplan’s Huw Rothwell.
 
Oil and gas firms are beholden to macroeconomic factors and exposed to substantial levels of risk relating to market volatility, uncertainty, and geopolitical instability. Despite the fact they are operating in a strategic global industry, many firms tend to be reactive. This can result in a form of short-termism.
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What’s Ahead? Future Health Challenges Facing the Oil and Gas Industry


Every day the oil and gas industry faces a multitude of global health care challenges, ranging from the exotic (i.e. African sleep disorder) to the mundane (i.e. heart attacks). Oftentimes the industry operates in remote areas, and the nearest hospital may be a two-hour plane ride away. Therefore, to ensure employees and their families receive the medical care they need, many oil and gas companies have built clinics and emergency stabilization facilities, and in some cases, full hospitals onsite.
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