Emerging Themes of Oil and Gas Sector: How Technology is Reshaping Supply and Demand for Natural Resources

This report critically evaluates the emerging themes of the oil and gas sector and their relation with business. It also highlights the modern trends and provides recommendations for the sector.

Running head: EMERGING THEMES OF OIL AND GAS SECTOR
Emerging themes of oil and gas sector
Name of the student
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Author Note:

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EMERGING THEMES OF OIL AND GAS SECTOR
Table of Contents
Title of the Case Study....................................................................................................................3
Introduction......................................................................................................................................3
Critical Evaluation of the case study...............................................................................................3
Figure 1- Annual Oil and Gas Venture Investment.........................................................................5
Figure 2- Comparison of US and UK oil sector..............................................................................6
Emerging Themes and their relation with Business........................................................................6
Modern Trends.................................................................................................................................7
Figure 3- Global CAGR...................................................................................................................9
Recommendations............................................................................................................................9
References......................................................................................................................................10

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Title of the Case Study
The title of the case study is “How Technology is reshaping supply and demand for
natural resources”?
Introduction
The emergence of a multi-polar world in the new millennium has driven the world to a
mad rush for oil and other non renewable sources of fuel in the emerging economies of the
world. The presence of a large number of companies in the emerging economies of the world and
their control over the majority of the World’s oil and hydrocarbon reserves has changed the
global outlook. A large number of neutral studies by different companies on the same subject has
shown the period between 2010 and 2020 to be the theme for the transformation and the growth
of a new culture in oil production. The following report has been formulated to critically evaluate
the emerging themes of the company as well as gain an insight into the macro-economic
environment of the mentioned sector. The report has started with the following introductory part
and will take its course with the critical evaluation of a case study that is based totally on the new
age determinants of the oil sector. The critical evaluation has been completed by means of a
thorough study and determination of different authors on different types of elements in the oil
sector industry. A detailed analysis of the different themes has also contributed to the make the
study more compact and effective in nature.
Critical Evaluation of the case study
The following case study has dealt with the reshaping of the energy sector using the most
modern forms of technology to adapt to the sustainable needs of the future. The case study

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throws light on the use of renewable sources of energy as well as the use of modern technologies
like drones, robotics and many more as such by McKinsey and Company to make it more ready
to the future technological challenges (trailblazerssforum.com. 2018). The world of
commodities over the past 15 years has undergone a massive change in terms of price and
demand. It first saw the rise in the prices of oil, gas and other metals and also experienced a
sudden crush in the prices of these commodities over the next few years. Now as the resource
companies and the exporting countries are gradually picking up the pieces, a disruptive future
lies ahead in the coming few years. The adoption of the robotics technology, use of the artificial
intelligence, Internet of Things and use of complex yet accurate data analysis techniques
including the macroeconomic trends in the market have led to the chang4 in the consumer
behavior. Such a change in the behavior of the consumers has transformed the process by which
the resources are consumed and produced. The case study has also highlighted on the demand
side of the consumers where a reduction in the consumption of the energy and use of more
energy efficient and renewable sources of energy are being constantly preferred by the different
organization. The use of such energies has been recently seen in homes, commercial purposes,
transportation and other similar uses (Appiah-Adu 2016). The innovation in the technological
field is also helpful to bring down the cost of the renewable sources of energy.
Throwing light on the supply side the authors clearly describes the increasing capability
of the producers and the companies to put the different range of premium technologies into
common use by effectively and efficiently using the mines and wells, raise the efficiency of the
drilling and extraction technique, predictive maintenance and many more as such. The following
case study clearly focuses on these trends and finds out that they have the capability to unlock
around $900 billion to $1.6 trillion within the year 2035 in view of the global economy

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(Ariweriokuma, 2009). The largest portion of the following savings amount will be generated
from the reduced demand for traditional energy sources. However the study predicts the abrupt
rise in the price of the oil in the coming decade. However the following totally depends on the
capability of the oil producers to adapt themselves with the new technological challenges in the
industry. The research however concludes with the fact that changes in the coming years will be
very much complex in nature. However the more the changes are complex, the more is their
chances of higher returns.
Figure 1- Annual Oil and Gas Venture Investment
Source: (Bessant Kaplinsky and Lamming, 2003)
As said earlier, Perrons and Jensen (2015) has mentioned that technological
advancements is aimed to pick up by a large amount in the coming years and the figures may

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stand out at a whooping amount of $1.6 trillion. The rising demand for the non renewable
sources of energy have provided the platform for the development of different forms of other
sources of energy and their utilizing sources in different fields. In contrary Reinhardt and
Gurtner (2015) says that, there has been a sudden increase in the efficient energy use in the world
which includes energy saving home appliances, energy saving cars and many other kinds of
similar items. The advancements in the technological sector will lead to the fall in the cost of the
non renewable sources of energy which in turn will lead to both the rise in the demand and price
of the renewable sources of energy. Thus the study clearly explains the rising trend of the
renewable energy sources in the globe.
Figure 2- Comparison of US and UK oil sector
Source: (Appiah-Adu 2016)

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Emerging Themes and their relation with Business
The Main themes that can be utilized by other business houses of the modern era are as
follows;
1. Rebalancing asset portfolios- The rebalancing act is all about the maintenance of a
portfolio of different options and having the knowledge of when to limit the operations
and when to increase the scale of the operations (Bessant Kaplinsky and Lamming,
2003). Portfolio management and the pursuit of flexibility are expected to continue with
the evolution of different types of energy solutions.
2. Capital allocation and Management- The allocation of funds for the development of the
infrastructure must be implemented by the management of the business organizations as
fresh fund allocation can help the organization to maintain a proper balance and maintain
a superior capability in the management of different complex projects (Ariweriokuma,
2009).
3. Implementation of new and latest technologies- The implementation of the latest
technologies like the use of internet, use of different technologically advanced policies
and programs can usher in profitability for the business.
4. Operational excellence and integrity- Similar to the international oil companies there is a
need for each and every business organization to match their level of global efficiency
with that of the management policies to satisfy the customers as well as meet the target..
5. Low Carbon Economy- As mentioned earlier the shift in the paradigm of the globalized
world towards the renewable sources of green energy makes the world a better place to
live in.

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Modern Trends
Political- The gradual shift of the political powers to the hands of the new emerging economies
of the world are changing the oil and gas industry of the world. The consumption of most of the
produced oil has seen a shift from the developed to the developing countries of the world. Thus
political factors contribute a great deal to the emerging themes of the mentioned industry
(Appiah-Adu 2016).
Technological- As mentioned earlier the advancement of technology in the modern times has
changed the way the companies approach the policies. The management of the companies have
implemented the latest set of technologically advanced approaches to get the best results.
Demographic- The changes in the demographic factors have highly contributed to the change in
the oil and gas industry. The rise in incomes, change in gender policies, migratory aspects has all
contributed greatly to the current state of the global oil and gas industry.
Social Trends and Shifts- The rise in income has led to the increase in the demands of the
people as each of them wants to lead a better life (Vecchiato 2017). There has been a sudden
increase in the demand for automobiles which has increased the carbon footprint of the globe.
Thus there has been a rise in the production of electric vehicles which has been influential to the
change of the industry outlook.
Industry Globalization- Globalization of the industry and the application of new technologies
has been a successful venture in the overall change in the market trends.

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Figure 3- Global CAGR
Source- (Vecchiato 2017)
Recommendations
A thorough analysis of the total report can provide some recommendations for the oil and
gas sector. They are as follows;
1. The implementation of technologies must be done in a gradual phase with utmost
consideration about the necessity of such a technological adaption.
2. The companies must focus on their agility to gain a sustainable future and stop
concentrating on the strategies for the growth of the business.
3. The focus should shift towards a robotic based engineering future.

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References
Appiah-Adu, K., 2016. Governance of the Petroleum Sector in an Emerging Developing
Economy. Routledge.
Ariweriokuma, S., 2009. The political economy of oil and gas in Africa. London and New York:
Routledge.
Bessant, J., Kaplinsky, R. and Lamming, R., 2003. Putting supply chain learning into
practice. International Journal of Operations & Production Management, 23(2), pp.167-184.
Lee, I. and Lee, K., 2015. The Internet of Things (IoT): Applications, investments, and
challenges for enterprises. Business Horizons, 58(4), pp.431-440.
Muralidhar, K., 2010. Enterprise risk management in the Middle East oil industry: An empirical
investigation across GCC countries. International Journal of Energy Sector Management, 4(1),
pp.59-86.
Perrons, R.K. and Jensen, J.W., 2015. Data as an asset: What the oil and gas sector can learn
from other industries about “Big Data”. Energy Policy, 81, pp.117-121.
Reinhardt, R. and Gurtner, S., 2015. Differences between early adopters of disruptive and
sustaining innovations. Journal of Business Research, 68(1), pp.137-145.
Trailblazerssforum.com. (2018). Oil and Fluid Capacities - Trailblazer SS 6.0 Forum. [online]
Available at: https://www.trailblazerssforum.com/forum/viewtopic.php?t=170 [Accessed 23 Apr.
2018].

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Vecchiato, R., 2017. Disruptive innovation, managerial cognition, and technology competition
outcomes. Technological Forecasting and Social Change, 116, pp.116-128.