Emerging Themes in the Oil and Gas Sector

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Emerging Themes
Report
7/18/2018
Student Name

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Contents
Introduction...........................................................................................................................................2
Finding and Analysis.............................................................................................................................2
1. Emerging Themes......................................................................................................................3
2. Themes affecting the decision-making..........................................................................................7
3. Recommendation.........................................................................................................................10
Conclusion...........................................................................................................................................11
References...........................................................................................................................................13

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Table of Figures
Figure 1..................................................................................................................................................3
Figure 2..................................................................................................................................................6
Figure 3..................................................................................................................................................9
Figure 4................................................................................................................................................11
Figure 5................................................................................................................................................14
Figure 6................................................................................................................................................15

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Introduction
The oil and gas sector divided into different segments by the Institute of American
Petroleum, which includes the upstream and downstream. The oil and gas sector is
enormously contributing to the economy and planning to save the resources for future use.
However, there are many challenges faced by this sector, as there is a scarcity of the natural
resources (CDP, 2018). With the rise in future demand, climate change, authority and
declining public level connections, the industry finds it is itself in a elusivered condition. The
oil and gas sector is facing the emerging theme in regulating in the market. This theme
includes the allocation of asset and management, operational excellence and integrity, cost
management, low carbon economy and rebalancing the asset portfolios. These themes and
factors are not only affecting the internal environment but also affects the social, work
environment, technology, and market (Strategy&, 2017).
Figure 1

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(Source: Strategy&, 2017)
The decision making for the oil and gas sector becomes difficult for big organisation like
OPEC, and other regulatory bodies which are planning to sustain their business for the future.
Use of natural resources cannot be restored by any of it substitutes perfectly so this is the
reason that companies of oil and gas is so concerned in saving and optimizing the use of these
natural resources (Brandt, 2014). Organisation like OPEC makes the strategy of low carbon
possible in the economy, which will help to save the resources. For this various decision-
making done. This will include the use of the technology in operating the oils, gas industry,
and follow the rules and regulations.
Finding and Analysis
There are many trends found in the oil, gas industry, which includes that existing fields,
would operate longer. The capacity of yield will increase by injecting water or gas such as
carbon dioxide. This will boost pressure of the reserves. The production of heavy oils from
oil sands will become more environments friendly and the use of energy will reduce.
According to research by British Petroleum, it can analyze that the majority of the energy
consumed by the economies, which are emerging in nature. There is a need to reduce the cost
in oil and gas companies to match up the needs of the economy.
1. Emerging Themes
From the case study, it can analyzed that there are certain areas, which affect the current
business strategies of the oil and gas sector, which includes:
Capital allocation and management
In this, companies are restructuring their funds in order to get the best results from them. The
quantity of the infrastructure spent has found to stagger in the recent years. Domestically and

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abroad, cost, risk, procurement, communications and quality, knowledge of resources and
time must manage in order to have the good governance model in the business structure. This
model will ensure the natural resources can use for the long period (Shuen, Feiler and Teece,
2014).
Operational excellence and integrity
International companies, which are dealing in oil and gas are looking forward to maintaining
the balance between their operating models and try to match the demands for the efficiency
globally. This will provide the data to the company about local responsiveness. The
operational excellence is required in the business to operate in the market efficiently
irrespective of its nature and size of the business. This will be applicable to every type of
business.
Cost Management
Companies are trying to control the cost of extracting and refining natural resources so that it
can provide at low cost in market. While in today’s scenario cost management done by the
expert. Uncontrolled cost can limit the growth strategies- postponing or even jeopardizing in
the future plans and projects. In this winner will be those companies, which are able to
manage their cost while optimizing their resources. One of the examples can be taken is of
the OPEC, which is considered an organisation who have taken the revenues oriented strategy
believing that this oil constrained world had arrived. It will be more important under the
ground rather than on the market (Yusuf, 2013).
Low carbon economy
Increasing the sustainability of the energy system will need a mixture of keys. Renewable use
of energy will show a crucial role in the global energy mix. The development of the
infrastructure like building of smart grids will essential to implement so that the scale of