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Oil and Gas

In: Miscellaneous

Submitted By Deepasastry
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Turn risks and opportunities into results
Exploring the top 10 risks and opportunities for global organizations
Oil and gas sector

Contents
Introduction Executive summary Part 1: Risks
Ernst & Young sector risk radar The top 10 risks
1. Access to reserves: political constraints and competition for proven reserves 2. Uncertain energy policy 3. Cost containment 4. Worsening fiscal terms 5. Health, safety and environmental risks 6. Human capital deficit 7. New operational challenges, including unfamiliar environments 8. Climate change concerns 9. Price volatility 10. Competition from new technologies 1 3 6 7 8 8 10 12 14 16 18 20 21 22 23 24 25 26 26 28 29 30 32 34 36 38 39 40 42

Part 2: Opportunities
Ernst & Young opportunity ladder The top 10 opportunities
1. Frontier acreage 2. Unconventional sources 3. Conventional reserves in challenging areas 4. Rising emerging market demand 5. NOC-IOC partnerships 6. Investing in innovation and R&D 7. Alternative fuels, including second generation biofuels 8. Cross-sector strategic partnerships 9. Building regulatory confidence 10. Acquisitions or alliances to gain new capabilities

Methodology

Introduction
While risk continues to dominate the business agenda, competition is also becoming just as dominant a feature. Market volatility, pricing pressure, variations in market performance, demanding stakeholders — all have contributed to a global economy that encourages competitive drive. And with that drive comes opportunity. For that reason, we have broadened the scope of what has traditionally been our Business Risk report to incorporate both risks and opportunities. This report is part of a wider cross-sector piece of research that explores the top 10 business risks and opportunities globally and across seven sector groups. The seven sectors are oil and gas, retail, power and utilities, banking,...

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