In recent years, the UK oil & gas industry has come under significant pressure. As Malcolm Webb, Chief Executive of Oil & Gas UK, said, “If the challenge facing our industry was significant when oil was at $110 per barrel, the scale of the issue has greatly escalated with the oil price collapse.” In 2014 production revenues amounted only to £24.4 billion, the lowest since 1998. This level is expected to fall to little more than £17 billion in 2015.
Brent Potts | SAP
The recent fall in commodity prices has hit upstream oil and gas companies hard, impacting cash flow and restricting their ability to continue investing in high-risk projects. There is a pronounced shift from volume to value as they focus more on increasing the efficiency of existing assets rather than developing new ones. And yet, technology adoption has fueled massive shifts in global demographics, wealth, and consumer engagement. To thrive in these trying economic times, and be strategically positioned to capitalize on future prospects, it is critical that oil and gas businesses invest in developing a technology infrastructure that provides sustainable operational improvements, captures best practices and creates connections throughout the entire ecosystem.
Jeffrey J. Brown | Pangea Global, LLC
Pope Francis’ release yesterday of his Encyclical Letter “On Care for our Common Home” raises many issues of interest and concern for the oil and gas industry. Looking deeper into the issue of climate change from the perspective of geologic time provides useful insight and suggests public policy positions and specific strategies for oil and gas executives.
Daniel A. Hagan | White & Case LLP
Over the past several months we’ve seen a rise in mergers and acquisitions among midstream energy firms. A variety of factors will likely push more firms to consider M&A, but one factor stands out: new regulations surrounding how to transport crude oil by train.
Jim Hogsflesh & Tony Rogers, Ph.D. | Right Management,
Bill Peters | TAPFIN & Keiran Ward | ManpowerGroup Solutions
The oil and gas industry, with a history of booms and busts, is in the midst of a downturn cycle. While consumers and businesses continue to enjoy significant price breaks at the gas pumps, the precipitous decline in oil prices has had a profoundly unsettling effect on the sector. Earnings are down, new investments are reduced and many industry projects are delayed or slowed.