Oil and gas have a great impact on the world economy because of the crunch of energy sources. Though there are various risks involved in setting up an oil venture, there are widespread opportunities as well. The industry is a money-making cake that has always bagged the top position in the economy graph. Oil and gas industry is a powerful one and it overturns the economies of many countries.
The top ten opportunities in the industry are listed below.
1. Frontier acreage: It is probably the main thing that has an impact over the industry. The operational boundaries have increased with time and so has the competency. Frontier acreage was not in the technology 30 years back but has increased gradually.
2. Unconventional sources: The energy demand is high and hence opportunities are wide for unconventional sources of energy.
3. Conventional reserves in countries like Iraq and Nigeria have also attracted investors because of flexible government policies. But areas near the Arctic still pose a threat to the operators because of its environmental challenges.
4. Market demand is almost always lying between 26% and 51%, because of which subtle investments are made every year.
5. The Partnership between the IOCs (International oil companies) and the NOC’s (national oil companies) have boosted the economy and faced difficult policies bravely.
6. Oil companies are now investing in R&D and innovation so that new techniques can be found to make extraction more environment-friendly.
7. Biotechnology seems to be gifting to the oil industry with emergence of second and third generation of bio fuels.
8. Strategic partnerships among cross sectors have evolved into major investments in technology.
9. Oil industry, just like other industries, runs on the regulatory confidence for business survival. Since now various national governments are involved in energy sector so licensure maintenance is not so difficult
10. There have been many acquisitions in the competitive industry, which have been promising for the world economy. Mergers and acquisitions in the oil industry have a major impact on the world economy.
It presents the snapshot of the top ten opportunities for companies in the oil and gas sector. It is based on research by people who are into the industry for many years and are well acquainted with all the boons and banes. They give four drivers of success that are:
· Customer reach
· Operational agility
· Cost competition
· Stakeholder confidence
These are outlined to study the market and companies’ potential to face the challenges that are faced by the oil companies.