Boom to bust – the familiar cycle for the commodity business of oil and gas – has once again plagued the global industry. Oil prices declined over 50% in 2015, and natural gas prices followed suit. Excess supply in the market, and declining demand, particularly in China, created one of the worst downturns in the sector’s history. Finally, prices are starting to show some sign of recovery, as the supply/demand relationship approaches equilibrium. But will this uptick continue? Where will prices even out, and how soon? These are the burning questions of the day. While global demand for affordable, reliable energy is expected to grow for the foreseeable future, the world is rapidly transitioning. Navigating the future is increasingly challenging in a more complex global market, where technological breakthroughs, changing consumer attitudes, and many other factors are at play. At PwC, our global oil and gas professionals understand the challenges that our clients face, along with the uncertainties and risks they have to manage, and we provide the help that companies need to succeed not only today, but into the future.
Instability continues to be a major concern around the world. The global economy is less than robust, and the BRIC countries formerly rapid growth has slowed. Geopolitical tensions remain in play throughout much of the Middle East, Africa and Asia, as well as Eastern Europe. Terrorism and cybersecurity breaches can happen anywhere at any time. The regulatory environment is also in transition, and oil and gas companies are being challenged to lower their carbon footprint around the globe. On many fronts, oil and gas companies face obstacles outside of their control that impact their business.
In addition to the external factors that complicate business, oil and gas companies also continue to face internal challenges. Talent shortages, rising costs, and capital constraints are some of the chief concerns. Simultaneously, there are global trends that are impacting where and how the business will grow or decline.
The industry also is dealing with social and behavioural changes. Urbanization, the growth of digital communication and social media, talent shifts and a host of other factors need to be addressed by the industry in terms of where and how they do business. The oil and gas industry wants to improve its public image and reduce scepticism, and monitoring social and behavioural changes will be an important step in this process.
So at PwC, we are not only watching these developments in the industry, but we are analysing these changes from the perspective of how they will impact our clients, and how we can best help companies prepare and manage the changes. We examine the issues, and build teams of subject matter specialists who develop appropriate solutions through our assurance, consulting, deals and tax services. Our experienced professionals are on the ground with offices in 756 locations in 157 countries around the world contributing local insight and understanding.
PwC is a leading advisor to the global oil and gas industry, working with every segment of the business—from oilfield services to upstream to midstream to downstream—to provide business solutions tailored to meet your needs. For more than 100 years, we have helped oil and gas companies succeed. We look forward to the opportunity to work with your company.
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