The Oil & Gas industry includes the global processes of exploration, extraction, refining, transporting (often by oil tankers and pipelines), and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum is also the raw material for many chemicalproducts, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The industry is usually divided into three major components: upstream, midstream and downstream. Midstream operations are usually included in the downstream category.
Global demand for crude oil and natural gas is strong, interest rates and cost inflation are low and hydrocarbon prices are at highs. Record levels of profitability and cash flow have resulted for large integrated oil companies and other sectors of the oil and gas industry. After years of cautious investment to find new oil and gas reserves, companies are increasing exploration and development, and the oil field services sector is seeing improved margins. The shift toward natural gas is accelerating in many markets with unprecedented levels of investment in LNG and GTL plants, pipelines and ships for production and transportation of natural gas.
Yet oil and gas companies are facing a multitude of challenges as well as opportunities, including:
Our oil and gas industry specialists help our clients develop solutions for capitalizing on the opportunities and managing these challenges.