Oil and gas prices were at record highs in mid 2008, only to experience a rapid decline as the global economy fell into recession. Oil & gas companies cannot focus on the short-term alone. The search for additional supply is essential to controlling the up and down industry cycle. Replacement reserves are located in more challenging locations, including deeper offshore waters and more remote onshore locations. Energy companies are diversifying their product mix, as non-traditional fuel sources become more price competitive, and alternative fuels are gaining interest. New investment in LNG, oil sands, oil shale, ethanol and other sources and products are showing rapid growth.
In such changing market conditions, oil and gas companies must also contend with changing regulatory requirements involving environmental, governance and reporting issues. The competitive environment is also changing, with national oil companies seeking greater participation in the global marketplace. M&A activities will likely increase as companies with large cash balances look for access to supply, or expansion into new markets.
PwC provides specialised services to meet the growing, complex requirements of companies operating in the oil and gas sector. Our team has the experience, skills and international network to contribute to your future success.