For global energy, utility and mining companies, effectively managing geopolitical risk is a strategic imperative. Cross border expansion to fuel corporate growth brings these companies into new markets. In some cases, ore bodies, as well as oil and gas reserves, are located in troubled or developing markets where considerable cultural, infrastructure, security or technology challenges must be met. At the same time, population growth, especially in Asia, is creating new demand for fossil fuels, power and ore bodies. Sufficient supply must be in place with supporting infrastructure and distribution to meet future demand.
Markets of particular interest to energy, utilities and mining companies seeking to resolve supply challenges or grow their stake today are Russia, the countries of the former Soviet Union, much of North and West Africa, as well as parts of Central and South America. In terms of anticipating future demand and getting into position ahead of competitors, China and India are of particular interest. Energy demand in the emerging economies of developing Asia, which includes China and India, is projected to more than double over the next quarter century. (Source: Energy Information Agency)
How PricewaterhouseCoopers can help you
Leveraging PwC's global network is a significant competitive advantage for our clients as they manage geopolitical risks:
- We have centres of excellence in key regions with more than 3,000 specialists serving energy, utilities and mining companies full time.
- Our industry specialists on the ground understand both the client's business and the dynamics of doing business in a territory targeted for expansion; therefore, clients save valuable time and mitigate risk.
- Our tax specialists, for example, balance the tax opportunities and risks in a new reporting location to manage the client's overall effective tax rate changes proactively.
