Introduction:
The petroleum industry has changed and it is no longer as we all used to know it. Technically, operationally and in its strategic management the changes we are, and will witness going forward will be phenomenal.
The future of the petroleum industry is being conditioned by currently known international factors such as the persistently low price of crude oil and various national peculiarities of individual producer countries as well as non-producing consumer countries.
Nobody predicted that crude oil will lose its cherished position and sell for less than a dollar, as recently the case, and the prices of oil and gas are likely to remain soft as fracking continues to open up additional sources of cheap oil production.
The western world has always been the biggest importer (consumer) of oil and gas but the challenges of their increasing environmental standards requirement are driving down their demand levels for petroleum products such as diesel oil (Automotive Gas Oil – AGO). The pandemic has further driven down demand for Jet Fuel and this will remain with us for some time. Though transportation/liquid fuels will not be easy to replace 100%, demand will continue to decline as renewable fuels and electrical energy sources serve to replace them.
Technology is changing, reduced staff strength will get slimmer, operations will depend more and more on IT and smart drilling to get to first oil faster will be more prevalent. As drilling projects grow in ambition, smarter will mean faster.
The future of the petroleum industry therefore will change significantly from the way we acquire and manage asset portfolios to the ways we drill, run the operations and finance the business as traditional funding arrangements also witness shifts and the way we manage Joint Ventures will no longer be the same.
The sale and marketing of crude oil and gas will not be spared, neither will the strategic management that delivers appropriate levels of profitability for both IOCs & NOCs be achieved through old ideas. The way and manner host communities are compensated can no longer be as currently practiced.
If you are to remain or be a part of the petroleum industry and effectively contribute to its future relevance and profitability, you must learn to embrace all the ‘new normal’ that will dictate and determine the industry future.
The various challenges and solutions that will be at play for profitable management of the industry requires your attention now, as your organisation prepares to face the challenges of the industry and positions itself for the future. Our industry and our participants will be prepared to flow with the change.
Contact our office for fool course brief.
This course is ideal for In-House delivery. (client venue)
