The future for
the oil
and gas industry has changed. The growth in production to supply a largely
Western-driven market and of competition between private companies for access
to reserves was one of the stories for over 100 years. The oil prices have
moved to a permanently high level since 2005. By producing more efficient
engines, ships, vehicles and by supplying alternative fuels some industries are
capturing some of the demands. Uncertain opportunities to produce
unconventional gas and oil are provided by the new technologies in many
countries of the world. In the traditional oil exporting
countries opportunities are still provided for the private sector companies
where industry is under state monopoly but these countries involve cooperation
which are controlled by the state oil and gas companies.
In the Middle
East oil exports, question of carrying the responsibility for the physical
security finally goes to the Asian markets rather than the Europe or US. The
world consumes Oil and gas supply 60% of the commercial energy, and their
combustion accounted for approximately the same proportion of global CO2
emissions. Oil and gas exports are more than 17% of the value of global exports
and provide more than 28% of GDP in Russia, Central Asia and members of the
Organization of the Petroleum
Exporting Countries (OPEC).
The world’s
stock markets are invested in the gas and oil sector just over 10% of the value.
What happens next in the industry will affect the consumers who depend on its
products or try to avoid the environmental and social effects of using them, as
well as the governments and shareholders who seek tax revenues and dividends
from their activities. The industry cannot develop its strategies independently
of governments. The report shows increasing and changing intervention by
governments, driven by climate
change policies and economic and physical security.
The oil and gas
industry has always changed, and has caused changes in the societies in which
it operates. The schismatic changes of the 1970s opened a new era. Those
responsible both inside and outside the industry need to try to understand what
is happening now and how it may affect the future, to explain their strategies
clearly and to adapt to new situations as they develop. In a world where technology
and environmental threats are changing industries and society so rapidly, the
slowly turning super tanker is not an image that excuses inertia in oil and gas
companies and those who deal with them. All who are in the industry or who are
involved with it need to share clear thinking about the future.
