Oil & gas reality check
Ten of the top issues facing oil & gas companies in the coming year
In the first half of 2008, oil and gas companies were living large: for the first time ever, the price of crude had surpassed $100 per barrel and continued on a seemingly unending sprint to new highs. Oil and gas companies everywhere were posting record profits; project expansions were on the rise. But then, in September 2008, after peaking in July at almost $150, the bottom fell out. The price of oil began spiralling downward as quickly and as dramatically as it had risen. Suddenly, life in the oilpatch was very different. Much of the new project planning and preparation that had been undertaken at higher oil prices was no longer viable, and those same record-setting companies were now faced with a new set of challenges – no longer how best to put their unprecedented profit levels to work but how to make a profit at all.
Commodity price volatility is, of course, only one of the many issues oil and gas companies must manage. It is central, but not singular. With this in mind, Deloitte has published Oil & gas reality check: Ten of the top issues facing oil & gas companies in the coming year.
“The oil and gas business is anything but straightforward,” says Dick Cooper, leader of Deloitte’s national Energy & Resources practice. “It’s complex, costly and subject to intense public expectation and scrutiny. Oil & gas reality check puts those factors in context and offers advice for making the most of difficult circumstances.”
Oil & gas reality check identifies and analyzes the main drivers of oil and gas activity for the foreseeable future. Featuring insight and commentary from Deloitte’s oil and gas professionals around the world, we examine everything from commodity price volatility to rising resource nationalism and regulatory complexity and ask: What are the key challenges facing your oil and gas business? What collective trends will have the greatest impact on the sector generally? How can you better chart your course over the coming months?