Upstream merger and acquisitions trends and considerations

Any exploration of upstream merger and acquisition trends and considerations has to start by stating the obvious, 2020 has been a turbulent time. It is not just in oil and gas that uncertainty has reigned, but in all aspects of the economy and society. Therefore, anything said in an analysis of 2020 and predictions for 2021 have to be delivered with a caveat. It is possible events may overtake the conclusions drawn. Trends The trends seem to point to a broad spread of transaction types, and many transactions are strategic, to help organisations deal with the general market uncertainty. ARead more

How accuracy and efficiency can save the world – a case for better metrology

The state of the environment was brought into sharp relief with the COVID-19 pandemic. While you would have thought the world would be distracted by the virus, most were astonished by the improvement in the environment. The air cleared, wildlife emerged, and there was a sudden realisation that humans are the cause of the climate crisis. While the oil and gas industry is seen as a root cause of some of these issues, sustainability is possible with better use of technology. Producers and manufacturers of oil and gas-based products can contribute to saving the world. Here we make a caseRead more

The Commitment to Sustainability in the Oil and Gas Sector

It might seem oxymoronic to use sustainable and non-renewable energy in the same sentence. How can the oil and gas sector commit to sustainability when oil and gas resources are being depleted with each moment of discovery, extraction and production? However, if we apply an element of common sense, we can use the term sustainable in this context because the resources will continue to be available for an exceptionally long time. So, what does sustainability really mean? If we were looking for a definition of sustainability in the oil and gas industry it would likely be the pursuit of cleanerRead more

How the energy sector protects us from supply outages in uncertain times

When there is something as dramatic as a pandemic, it is right to feel concerned about the security of the infrastructure. Although energy sector workers are considered key to our day to day lives, we might worry that supply outages are a possibility with people becoming ill and continued maintenance a challenge. Yet, there has been no problem with energy supply in these uncertain times. Indeed, the National Grid announced that coal-powered power stations had not contributed to electricity supplies for two months, from the beginning of April through to June. It is right to question how the UK’s powerRead more

The impact of supply growth by non-OPEC producers

The Organization of Petroleum Exporting Countries (OPEC) is a cartel of 14 major oil-exporting countries. There are 12 oil barons who are said to control the world’s energy supply, with Ali bin Ibrahim- al-Naimi from Saudi Arabia said to have the most powerful voice. By regulating the supply of oil, OPEC attempts to manipulate the price of oil on the world market. The way the oil world used to work Researchers have identified the period between 1973 and 1997 as being the age of OPEC. There was dominance over oil production that meant OPEC held significant, direct influence over globalRead more

Is there a lack of technical talent entering the sector?

The simple answer to the question posed in the title is “yes”. Yes, there is a skills crisis in the oil and gas sector. More than half of those working in the industry believe that the skills shortage is the biggest challenge facing the industry now and into the future. Retirement of older talent The first factor causing a skills crisis is “The Great Crew Change”. Older workers are leaving, reaching retirement age, and taking the skills, expertise and knowledge along with them. This loss of institutional memory is worsened by a lack of focus on talent acquisition in recentRead more

The impact of regulatory uncertainty

Investopedia lists regulatory uncertainty as one of five significant risk factors for the oil and gas sector. Along with variable prices and political upheaval, the possibility of regulation changes severely impacts confidence in the industry. Predicting trends Companies are having to exhibit courage in their convictions when ploughing ahead with compliance and risk initiatives. Despite the continued threat that lawmakers and regulators could shift the ground beneath them, companies are compelled to keep driving forward with schemes addressing effectiveness and efficiency. The potential that the programs they initiate might fall foul of new laws, regulations and supervisory expectations are justRead more

The impact of Coronavirus on the Oil and Gas Sector

Coronavirus (COVID-19) has impacted all areas of our lives. It is no surprise, therefore, that it has and will continue to have a significant impact on the oil and gas sector. The situation we face The BBC (19th March 2020) reported that the North Sea oil and gas sector is in a “paper-thin position”. A substantial crisis was caused by the drop in the oil price to below $30 a barrel. There is also the continued pressure on cashflow that began with the downturn in 2016, as well as difficulties with the supply chain. In short, we are in aRead more

Managing HR Succession in oil and gas

The wealth of knowledge and experience held in the highest leadership positions in oil and gas is an asset. There is no doubt that industry leaders in the sector demand the highest reward and bonuses for the talent they bring. Before we talk about succession planning, we must acknowledge the benefits of having this bank of leadership in place. However, to rely on a generation of leaders is a short-term perspective for an industry that needs a far-sighted vision. Visionary leaders understand that they will at some point retire and seek other challenges. It is at this point that theRead more

Petrochemicals and growth

The petrochemical sector continues to expand in size and importance. Developing nations’ demands for petrochemical products continue to increase and will likely continue to do so beyond 2025. The most significant demand comes from the Asia-Pacific region, the Middle East and the US. It is in these three regions that there is noted growth. Asia-Pacific As well as the development in the supply chain, the Asian-Pacific region has also increased construction of petrochemical sites. Although these are capital intensive investments, with the integration of refining and petrochemical facilities, it is thought to increase efficiency and value. China accounts for almostRead more