Challenges in Oil & Gas Industry
Current & Emerging Challenges in Global Oil & Gas Industry
Submitted By: ABHISHEK KUMAR ROLL – 02 PGDM - IB
Under the Guidance of: Prof. C P JOSHI
HOD (Strategy, International Business & General Management)
Current & Emerging Challenges in Global Oil & Gas Industry
1. Topic: Current & Emerging Challenges in Global Oil & Gas Industry
2. Objective: This seminar paper aims to briefly analyse the current challenges faced by Global Oil & Gas companies and its impact on the global energy sector
3. Methodology Used This Seminar paper will primarily be based on the secondary research. Newspaper articles, case studies and industry magazines & Journal will largely constitute the seminar paper contents.
ABHISHEK KUMAR
Roll -02
PGDM –IB 2011- 13
Page 1
Current & Emerging Challenges in Global Oil & Gas Industry
4. Introduction When oil prices reached a record high of almost $150 per barrel in July 2008, industry stakeholders recognized that prices would ultimately slip. No one however, predicted the speed or severity of the fall. By January 2009, prices dropped to $40 per barrel. Upstream companies that had committed themselves to higher cost found themselves saddles with unsustainable production cost. As approval for new projects ground to halt, downstream companies also began experiencing the ill effects of global financial crisis. Natural decline rates in existing field average roughly 7 % globally, which reduces annual supply capacity by approximately six million barrels per day. Post- recession resumption in the massive growth rates in countries like China & India promises to quickly reverse the recent drop in global consumer demand. Cost of regulatory compliance remains set to rise, especially in United States, as it steps up plan to reduce greenhouse gas emission aggressively. Retirement rates in oil & gas industry and talent crunch also are some other key challenges which need to be addressed. To address these challenges, oil & gas
Submitted By: ABHISHEK KUMAR ROLL – 02 PGDM - IB
Under the Guidance of: Prof. C P JOSHI
HOD (Strategy, International Business & General Management)
Current & Emerging Challenges in Global Oil & Gas Industry
1. Topic: Current & Emerging Challenges in Global Oil & Gas Industry
2. Objective: This seminar paper aims to briefly analyse the current challenges faced by Global Oil & Gas companies and its impact on the global energy sector
3. Methodology Used This Seminar paper will primarily be based on the secondary research. Newspaper articles, case studies and industry magazines & Journal will largely constitute the seminar paper contents.
ABHISHEK KUMAR
Roll -02
PGDM –IB 2011- 13
Page 1
Current & Emerging Challenges in Global Oil & Gas Industry
4. Introduction When oil prices reached a record high of almost $150 per barrel in July 2008, industry stakeholders recognized that prices would ultimately slip. No one however, predicted the speed or severity of the fall. By January 2009, prices dropped to $40 per barrel. Upstream companies that had committed themselves to higher cost found themselves saddles with unsustainable production cost. As approval for new projects ground to halt, downstream companies also began experiencing the ill effects of global financial crisis. Natural decline rates in existing field average roughly 7 % globally, which reduces annual supply capacity by approximately six million barrels per day. Post- recession resumption in the massive growth rates in countries like China & India promises to quickly reverse the recent drop in global consumer demand. Cost of regulatory compliance remains set to rise, especially in United States, as it steps up plan to reduce greenhouse gas emission aggressively. Retirement rates in oil & gas industry and talent crunch also are some other key challenges which need to be addressed. To address these challenges, oil & gas