Three challenges the oil and gas industry faces today
In September, Next Generation Oil & Gas published an article in its magazine called “Reality Check for Oil,” in which Deloitte, an organization or brand of independent firms throughout the world that “collaborate to provide audit, consulting, financial, advisory, risk management and tax services to selected clients” or a company that is “serving our clients and helping them solve their toughest problem,” according to Deloitte’s web site.
The article lists the top 10 challenges oil and gas companies face in America according to Dick Cooper, leader of Deloitte’s national Energy & Resources practice.
Of those ten challenges Cooper lists, I’d like to take a look at three of them and see what opinions you have as well.
1) Reserves are getting harder to reach and extract.
So what does this mean for you as independent oil and gas operators? Do you see this challenge as an opportunity to expand your industry and business, or something to be feared?
To me, and correct me if I’m wrong, but I see it is an opportunity for our industry – and one that many are diving right in to. I think this can be seen in how many across the country are trying what’s been coined “unconventional drilling,” and horizontal drilling, and accessing oil and gas in shales instead of just oilfields.
I also see it in the technological advances that engineers are coming up with, making how you access those harder-to-reach reserves more accessible in a digital oilfield.
2) Health and safety remain critical concerns.
No one needs to be reminded of the Deepwater Horizon offshore rig that exploded on April 20, 2010, killing 11 crew members and began the United States’ probably largest offshore gulf spill, to know that safety it always a huge concern in this industry.
Everyone oil and gas publication I read has some article or special section on safety in the workplace and safety tips to follow. But is it enough? What strides are you taking at your business to make sure all workers are kept safe?
This may seem silly, but I came across a resource from the United States Department of Labor that many of you involved in creating and mandating safety policies in the oil and gas industry may find useful. The site follows a well from inception to when it’s either plugged or abandoned with instructions and tips for how to make each step as safe as possible.
Check out this resource here.
3) An alternative energy strategy is mandatory.
I’ve shared a few thoughts on the blog so far about alternative energy strategy in terms of natural gas – but thinking more broadly about the topic, what does it mean for you and more specifically the way you operate?
Knowing as much as you do about how oil and gas work now as our energy source, what alternatives are viable? How and what can we do to help find a suitable alternative and how imperative is it right now?
I’d love to hear your thoughts on these challenges, please leave a comment or shoot me an e-mail at [email protected].