The world’s suppliers of oil and gas aim to provide reliable and affordable supply of energy needed to grow the global economy, and to do so without harming the environment. Traditionally, fossil fuels have provided the largest source of reliable energy, with oil and gas comprising more than half of the world’s supply. Under debate now is whether the supply of fossil fuels has peaked, and if so, which energy sources will fill the supply/demand gap.
Certainly oil and gas reserves are becoming more difficult and more expensive to find and exploit. Frontier markets and deep water sources hold the most promise for discovering substantial reserves. These locations also present considerable risks for exploration and development operations, ranging from economic, social and political instability to geological challenges.
Downstream operations have a different set of challenges. New refining capacity is needed, particularly in emerging markets, while many existing refineries are overdue for upgrades. Yet communities make it difficult, if not impossible to locate new refineries. Refinery upgrades and expansions are very costly.
In the midstream sector, pipeline integrity is an ongoing concern. Aging infrastructure, sabotage, and environmental conditions all can threaten the supply of oil or gas pouring through miles of pipeline. The midstream sector is also finding it more difficult to locate new pipeline; there are environmental and social concerns blocking new developments or expansions.
How PwC can help you
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: