What do we know about future of the industry?

article-image

Is there any chance that the future of the Oil & Gas industry will become more colourful than for the last 4 years? According to Deloitte’s oil, gas and chemicals industry executive survey(1) 2019 will be an unique chance to get back on track with overall confidence in the business. Thanks to digitalization, new buzzword for the industry, business feel safer and more peaceful than in the last few years. Upstream, downstream, almost every area sees possibility to use new methods in daily tasks. Whole transformation looks overwhelming, but it is necessary to survive in the age of energy transition. Operators want to spend less and get more- while at the same time divest acreage, infrastructure, or companies. In short-term companies want to improve operating efficiency. Thanks to collected data and new machine learning methods people are able to look at the data from completely new perspective. This year oil price is volatile mainly due to its dependency on politics. Sanctions on Iran, has increased to price 85$ for Brent in October. What’s interesting right now is that everyone expected oil price to skyrocket following US sanctions on Iran, what happened is totally the opposite. Oil prices have fallen a lot to 65$ for Brent. Nevertheless looking at the oil forecast, Tarfigura puts the oil per barrel at 100$ by the end of the year (3). Let’s see will they be right. We still do not know how the market would react with price this high.

Other report regarding current changes made by Accenture consulting – “The digital oil company: Getting ahead of the energy transition” (4) tells us that current technology change requires new ideas strengthened by proactive planning strategies and committing investment. Outdated thinking is not an option right now. A good digital strategy sometimes will require additional leadership skills, it most likely require talent to be open-minded and flexible in this transition.

These changes show us that we should not look at the industry same as few years ago. It is quite certain that jobs that people lost due to 2014 crisis will never come back. Right now if someone wants to start working in the industry, has to be prepared for different responsibilities and tasks. Let’s hope that the trust “given” to digital transition will not be in vain.

 

References:

  1. https://www2.deloitte.com/content/dam/Deloitte/us/Documents/energy-resources/us-er-2018-oil-gas-chemicals-survey.pdf
  2. http://www.oil-price.net/en/articles/saudi-arabia-backwards-despite-high-oil-price.php
  3. https://www.reuters.com/article/us-asia-oil-appec-trafigura/oil-could-rise-to-100-by-2019-as-global-markets-tighten-merchants-warn-idUSKCN1M40CB
  4. https://www.accenture.com/us-en/_acnmedia/PDF-58/Accenture-The-Digital-Oil-Company-Getting-Ahead-Of-The-Energy-Transition.pdf

 

About author