The major shift in economic power to emerging countries such as China and India impacts the energy industry, perhaps more than any other. Economic growth is heavily tied to energy growth in emerging countries. Oil and gas consumption in the BRIC countries (Brazil, Russia, India and China) alone is estimated to be nearly 30% of the global fossil fuel sources. Russia is now second to the US in natural gas consumption. Similarly, in South America, natural gas is the fastest growing fuel source. Securing an adequate energy supply is a major concern in these emerging markets.
This high demand creates opportunities for international oil and gas companies (IOCs). While some of the emerging countries have strong domestic supplies of oil and/or gas, others, such as China, are largely dependant on imports to meet a majority of demand. But, as many IOCs have discovered, the geopolitical environment in emerging countries is sometimes a very risky.
How PwC can help
PwC’s global energy practice includes over 3,100 professionals located in 144 countries around the world. We have formed Energy Centers of Excellence in key strategic locations, including emerging markets such as Brazil, Russia, India and China, where energy companies invest and operate. PwC offers a complete range of audit and assurance, transactions, crisis management, performance improvement, tax and human resource services, tailored to the energy industry, wherever you may need them. We can provide assistance in:
- International expansion through direct investments, transactions, joint ventures or production-sharing agreements
- Managing commodity price and currency risks
- Assessing and managing geopolitical risks
- Managing cash repatriation
- Global workforce and expatriate planning
- Taxes and transfer pricing
