Observations on the IASB's extractive industries draft discussion paper for the oil and gas sector.
Oil and gas
We offer depth, breadth and quality of professional expertise to serve the needs of clients across the oil and gas sector and its up-, mid- and downstream components. We help clients to respond to complex and changing markets, commodity price volatility, regulatory reform and restructuring. The value we offer our clients comes through a combination of our strong technical skills across many disciplines, our thorough knowledge of the industry and our global network.
Research and insights
Issues and trends
- Upstream – Still reeling from the price rollercoaster, the segment is adjusting rapidly, postponing investment plans, re-negotiating costs in ongoing operating contracts, and conserving cash to take advantage of the acquisition and future growth opportunities that emerge as rivals weaken.
- Downstream – Any rebound in demand that might have accompanied falling crude oil and natural gas prices have been more than negated by the wider economic recession. Margins are pressured, credit risk is significantly higher and the petrochemicals off-take for industry is reduced.
- Oilfield and EPC contractors – Notwithstanding the current adverse market conditions, which are impacting the contractors’ ability to sustain capacities as their oil and gas corporate customers tighten their belts, the industry will remain hugely reliant on service providers for manpower, project implementation and innovation. It is critically important for the whole industry that this segment retains its capacity and abilities to meet the inevitable renewal of activity once the recovery begins.
- Strategic imperatives – The significant medium-term challenges have not gone away:
- Securing reliable supplies of oil and natural gas through additional and diverse sourcing remains a key strategic national priority
- Operations in existing plant and oil and gas transport infrastructure, and all new investment projects need to address climate change and other environmental concerns to improve sustainability and safety.
Our clients
We work with companies in all segments of the oil and gas industry, from exploration and production, through to oilfield service companies, energy trading businesses and downstream companies.