The oil and gas industry has impacted our lives in many ways. It is majorly beneficial to us on a global scale and is essential to modern society by providing energy, heat, transport and beyond. Many changes have had to made due to problems like price volatility, the environment, maturity, evolving regulation and more but the industry has constantly adapted and faced these problems head on.
According to experts, 2014 was one of the worst years for the oil and gas industry. Headline writers have been analysing and obsessing over the price of oil for decades, and the future of the industry is being questioned every day. There is a limited amount of oil and the industry has never been more competitive than it is today. Different countries, governments and companies understand the need to ensure that everyone has the best prosperity possible whilst balancing the economic and social factors of production.
Environmental factors play a major part in the oil and gas industry also. As a society, we are trying to move towards creating a greener planet and lower our carbon emission. This is going to effect the industry drastically because as time goes on, we will be transitioning to stay away from gas or oil for energy. But this transition cannot be done in the short term, and demand is still high. The oil and gas industry is a significant part of our economy, but it plays a vital role in our green transition.
Maintaining a company within an industry so complex and in demand is very difficult in today’s constantly changing, eco-friendly, economical society. There are many factors to process like supply, distribution, competition and the environment. Producers and refiners need to define the future of the industry in preparation for the outcome of all these defining factors.