Talent Transition in a Cyclical Oil & Gas Industry


Recruiting new talent is often more difficult in industries that face dramatic boom and bust cycles, a pain currently felt acutely in the oil and gas industry.
 
In recent years, the industry has already suffered from the difficulty of marketing oil and gas careers to a generation brought up with a negative perception of the industry’s impact on the environment or on business practices. Compounded by the uptick in layoffs by oil and gas extraction companies due to the drop in crude oil prices,  that negative perception of careers in the industry will make it more difficult to hire when the market recovers. An aging workforce further adds to this problem of a potential talent shortage, as a majority of those currently employed move toward retirement.
[Read more…]

3 Key Trends to Shape the Energy Markets Beyond 2015


In the current environment, change is the only certainty. While the industry continues to deal with the impact of falling oil prices, a number of important trends will develop and evolve.
 
These will challenge market participants in different ways; however they share some commonalities in that they all encompass the need to utilise increasing amounts of data to empower more strategic thinking, deliver greater operational efficiencies and support more effective resource usage.
[Read more…]

A Good Night’s Sleep in 2015 will Prove Challenging for Industry Executives


Like you, I enjoy a full night’s rest after a long day. But if you’re in the c-suite at an oil or gas company, you are all too familiar with sleep deprivation. Over the past eight months, oil prices have declined to the lowest point in five years and there still remain myriad issues in the year ahead that will undoubtedly keep many executives up at night. The latest figures from the U.S. Energy Information Administration find that overall domestic production of crude oil will grow 7.8 percent to 9.3 million barrels of crude a day in 2015. However, this growth in production could prove worrisome – a disquieting indication of overextending drilling operations and creating abundance in supply as barrel prices remain suppressed.
[Read more…]

Cheap Energy – Good for the Consumer, Bad for the Industry


Although consumers might be gung-ho to pay cheaper prices at the gas pump, the plunge in oil prices for oil and gas companies is far from exciting. With prices down by 50% from their height in 2014, these fluctuating oil prices will cause major shifts in mergers and acquisitions, as well as push oil companies to embrace innovations. More specifically, companies are going to look towards the real-time data collected from Internet of Things (IoT) to optimize processes and create efficiencies.
 
So, How Did We Get Here?
By the law of supply and demand, it was inevitable that oil and gas prices would drop. With Saudi Arabia as a driving force within OPEC, their push to continue oil production despite the falling prices led to a continuing oversupply of oil. As the Saudis strived to maintain their market share, they signaled they had no intent to cut back on oil production, even though the decreased supply would raise the prices. They feared that had they done so, they would lose market share to other oil producers, depreciating the Saudi influence within the market.
[Read more…]