the global oil & gas industry: prospects & challenges in the next decade
DESCRIPTION
THE GLOBAL OIL & GAS INDUSTRY: PROSPECTS & CHALLENGES IN THE NEXT DECADETRANSCRIPT
![Page 1: THE GLOBAL OIL & GAS INDUSTRY: PROSPECTS & CHALLENGES IN THE NEXT DECADE](https://reader035.vdocuments.us/reader035/viewer/2022062614/546e6edbb4af9fbe268b464f/html5/thumbnails/1.jpg)
THE GLOBAL OIL & GAS INDUSTRY: PROSPECTS & CHALLENGES IN THE NEXT DECADE
Presented By: Theophilus AcheampongAberdeen
July 12, 2011
![Page 2: THE GLOBAL OIL & GAS INDUSTRY: PROSPECTS & CHALLENGES IN THE NEXT DECADE](https://reader035.vdocuments.us/reader035/viewer/2022062614/546e6edbb4af9fbe268b464f/html5/thumbnails/2.jpg)
PRESENTATION OVERVIEW
The Global Oil & Gas Value Chain
Major Changes within the Oil and Gas Industry
Company Strategy Framework
Barriers to Change Within the Business
Overcoming the Barriers to Change
Summary and Conclusions
Appendix
2
![Page 3: THE GLOBAL OIL & GAS INDUSTRY: PROSPECTS & CHALLENGES IN THE NEXT DECADE](https://reader035.vdocuments.us/reader035/viewer/2022062614/546e6edbb4af9fbe268b464f/html5/thumbnails/3.jpg)
The Global Oil & Gas Value ChainUpstreamOil & Gas
Mid Stream
Downstream
─ Exploration─ Field Development ─ Production Operations
─ Transportation─ Processing─ Storage & Distribution
─ Manufacturing─ Refining & Petro-Chemicals─ Wholesale & Marketing
Raw Crude/Gas
Feedstock
3
![Page 4: THE GLOBAL OIL & GAS INDUSTRY: PROSPECTS & CHALLENGES IN THE NEXT DECADE](https://reader035.vdocuments.us/reader035/viewer/2022062614/546e6edbb4af9fbe268b464f/html5/thumbnails/4.jpg)
Major Changes within the Oil and Gas IndustryChallenges Volatile energy markets on the macro-economic front
Increased operational and logistical challenges from tougher environments
Increased regulatory pressure on the industry & Fiscal regime instability
Skills and labour supply deficit in the industry
4
Opportunities Growing market in the low-carbon sector of the economy
Closer collaborations between contractors, operators, and the supply chain
Opportunities in frontier markets with newer assets and technologies
![Page 5: THE GLOBAL OIL & GAS INDUSTRY: PROSPECTS & CHALLENGES IN THE NEXT DECADE](https://reader035.vdocuments.us/reader035/viewer/2022062614/546e6edbb4af9fbe268b464f/html5/thumbnails/5.jpg)
Company Strategy Framework
DIVERSIFCATION OF REVENUE STREAMS
EFFECTIVE COST CONTROLS & CUSTOMER SERVICE FOCUS
SAFETY & HUMAN CAPITAL INVESTMENT
5
![Page 6: THE GLOBAL OIL & GAS INDUSTRY: PROSPECTS & CHALLENGES IN THE NEXT DECADE](https://reader035.vdocuments.us/reader035/viewer/2022062614/546e6edbb4af9fbe268b464f/html5/thumbnails/6.jpg)
Company Response StrategyDIVERSIFCATION OF REVENUE STREAMS
• Offer a broad service range (e.g. Logistics supply in Renewables such as Offshore wind & Turbine Installations)
• Consolidate & leverage existing business in the UKCS (e.g. Decommissioning Projects)
• Emerging markets opportunities such as Africa & Asia (e.g. J.V. Partnerships and Acquisitions)
EFFECTIVE COST CONTROLS &
CUSTOMER SERVICE
• Continuous Capital Expenditure and Technology investments to improve economies of scale & efficiency
• Reduce operational cost base utilizing innovative approaches (e.g. Cut down on wastages, hedge fuel price risks )
• Understand customer requirements, ensure project deadlines and service delivery are timely
SAFETY & HUMAN CAPITAL INVESTMENT
• Investment in Employee Health & Safety
• Initiatives to ensure continuous supply of talent pool (e.g. Training, Leadership & Personal Development Programmes)
• Adequate succession planning for senior management
6
![Page 7: THE GLOBAL OIL & GAS INDUSTRY: PROSPECTS & CHALLENGES IN THE NEXT DECADE](https://reader035.vdocuments.us/reader035/viewer/2022062614/546e6edbb4af9fbe268b464f/html5/thumbnails/7.jpg)
Barriers to Change
7
• Macro-economic factors (e.g. Oil Prices & Fiscal regime instability)
• Non-standard legal & environmental regulatory frameworks
• Financial and other resource constraints
POLITICAL & ECONOMICAL
• Non existence of expertise in new service offerings and emerging technologies
• Non-integrated operations at the organizational level
SOCIAL & TECHNOLOGICAL
![Page 8: THE GLOBAL OIL & GAS INDUSTRY: PROSPECTS & CHALLENGES IN THE NEXT DECADE](https://reader035.vdocuments.us/reader035/viewer/2022062614/546e6edbb4af9fbe268b464f/html5/thumbnails/8.jpg)
Overcoming the Barriers to Change
8
Utilize integrated logistics policies to cut down project
timelines.
Bespoke risk & asset management strategies to address
capital allocation decisions.
Membership of industry bodies such as Oil & Gas UK to
advocate on behalf of industry.
Effective communication strategies to understand employee
& customer needs.
Training and human capital development.
![Page 9: THE GLOBAL OIL & GAS INDUSTRY: PROSPECTS & CHALLENGES IN THE NEXT DECADE](https://reader035.vdocuments.us/reader035/viewer/2022062614/546e6edbb4af9fbe268b464f/html5/thumbnails/9.jpg)
Summary & Conclusions
9
Price Risks, Capital Investments and Sustainable development will be industry drivers in the coming decade.
Company strategy should focus on: ― Diversification of Revenue Streams― Effective Cost Controls &Customer Service Excellence― Safety & Human Capital Investment
Benchmarks on supply chain focus, operational excellence, & regulatory compliance.
UKCS will be pivotal in building on core competencies.
Future growth in the industry will come from investments in new assets, technology & people.
![Page 10: THE GLOBAL OIL & GAS INDUSTRY: PROSPECTS & CHALLENGES IN THE NEXT DECADE](https://reader035.vdocuments.us/reader035/viewer/2022062614/546e6edbb4af9fbe268b464f/html5/thumbnails/10.jpg)
Thank You:
Questions?
![Page 11: THE GLOBAL OIL & GAS INDUSTRY: PROSPECTS & CHALLENGES IN THE NEXT DECADE](https://reader035.vdocuments.us/reader035/viewer/2022062614/546e6edbb4af9fbe268b464f/html5/thumbnails/11.jpg)
Resources & Other Useful links
Source: DECC, 2011
![Page 12: THE GLOBAL OIL & GAS INDUSTRY: PROSPECTS & CHALLENGES IN THE NEXT DECADE](https://reader035.vdocuments.us/reader035/viewer/2022062614/546e6edbb4af9fbe268b464f/html5/thumbnails/12.jpg)
Resources & Other Useful links
Source: BP Statistical Review of World Energy 2011
![Page 13: THE GLOBAL OIL & GAS INDUSTRY: PROSPECTS & CHALLENGES IN THE NEXT DECADE](https://reader035.vdocuments.us/reader035/viewer/2022062614/546e6edbb4af9fbe268b464f/html5/thumbnails/13.jpg)
Resources & Other Useful links
Source: BP Statistical Review of World Energy 2011
![Page 14: THE GLOBAL OIL & GAS INDUSTRY: PROSPECTS & CHALLENGES IN THE NEXT DECADE](https://reader035.vdocuments.us/reader035/viewer/2022062614/546e6edbb4af9fbe268b464f/html5/thumbnails/14.jpg)
Resources & Other Useful links1. http://www.oilandgasuk.co.uk/knowledgecentre/supplychain.cfm
2. http://www.spe.org/jpt/print/archives/2011/04/16TalentTechnology.pdf
3. http://www.pwc.com/en_GX/gx/transportation-logistics/pdf/hoisting-the-sails_final.pdf
4. http://ax4energy.com/LinkClick.aspx?fileticket=vbON1Pl4Kj4%3D&tabid=67
5. http://www.kpmg.no/arch/_img/9448852.pdf
6. http://
www.deloitte.com/assets/Dcom-Australia/Local%20Assets/Documents/Services/Risk%20services/220909_Del
oitte_Oil_and_gas_reality_check.pdf
7. http://www.ey.com/Publication/vwLUAssets/Top_10_risks_affecting_oil_and_gas_in_2010/$
File/The%20top%2010%20risks%20for%20oil%20and%20gas.pdf
8. http://www.energyinst.org/information-centre
9. http://www.economist.com/node/4489659
10. http://www.abdn.ac.uk/~pec144/acreef/publications.html
11. http://
www.bp.com/liveassets/bp_internet/globalbp/globalbp_uk_english/reports_and_publications/statistical_ener
gy_review_2011/STAGING/local_assets/pdf/2030_energy_outlook_booklet.pdf
12. https://www.og.decc.gov.uk/