Emerging Trends in the Oil and Gas Industry

This report analyzes the emerging trends in the oil and gas industry, including the impact of emerging societies, work and environment, technology advancements, and global economic issues. Recommendations are also provided to tackle these issues.

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Emerging Trends
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Emerging Trends
Table of Contents
Introduction......................................................................................................................................3
Summary..........................................................................................................................................3
Emerging societies.......................................................................................................................4
Emerging work and environment................................................................................................4
References......................................................................................................................................12

Emerging Trends
Introduction
Changes, up-gradation and the amendments that are brought in or are meant to occur can be
considered as the emerging trends. These emerging trends are held liable for influencing the
business environment (Finer et al., 2015). Emerging trends are varied in nature and have various
impacts on the various aspects of business environment and the business corporations. Every
business organization is expected to execute a detailed analysis of the trends that will stimulate
the operations and functionalities of the firm. The presented case scenario is focused on the
emerging trends in the Oil & Gas Industry. The report is bifurcated in various segments
describing the emerging trends in the Oil & Gas industry.
Oil and gas sector is a huge contributor in improving and stabling the economic
conditions of a number of national economies and hence it has a great significance to the global
community. Majorly the report will be focused on the future of oil and gas industry and also the
challenges that it is facing. Although the oil and gas sector is counted as the top source of energy
for decades to come. But there are various elements that are stimulating and making the future of
oil and gas industry delicate, the factors are future demand, climate change, the cost of project
development, governance and deteriorating community-level relationships. The prime objective
of the below-presented report is critically analyzing and evaluating the emerging trends in oil and
gas industry.
Summary
Business strategies are the plans and tactics that are utilized by the business organizations for
tackling and dealing the various aspects and variants within the business environment (Graham,

Emerging Trends
2017). Strategies play an empirical role in any of the business corporations and the same is with
the oil and gas sector. Developing strategy is a crucial task and the same should be done with the
greater level of effectiveness and efficiency. There is the varied range of variable that is
considered as liable for stimulating the current business strategies:
Emerging societies
Society forms a great part for any of the business organization as it comprises of the customers,
the clients, suppliers, vendors, and all other stakeholders. The business entity is required to
develop and plan strategies after considering all of the above-mentioned variables of the society.
As given in the present case study emerging society are considered as very much liable for
influencing the current business strategies in the business environment of the oil and gas sector.
Oil and gas sector is considered as one of the greatest threat to human beings as it is one of the
biggest contributors of in increasing the level of pollution (Kelland, 2014). The societies are now
more aware of and hence it has become more difficult for the oil and gas industries to operate the
business. The This can be demonstrated more precisely by making use of a given scenario. The
shale blast in the United States and the Paris atmosphere agrees, be that as it may, have changed
the business' viewpoint for the fate of oil and gas. With the prospect that real economies like the
US, China, and Europe will effectively endeavor to move far from oil when the expenses for
creating oil from shale and different sorts of source shake and in addition from customary
sources is declining through mechanical advancement, makers are coming to understand that oil
under the ground may some time or another be less important than oil delivered and sold in the
coming years.

Emerging Trends
Emerging work and environment
Emerging works and trends from the petroleum industry ensures that working environment is
safe and productive with the help of societal and technological development (Killing, 2012). The
new emerging work trends have come up with different strategies to help tackle the operational
and technical challenges. With the help of new strategies and planning, the industry has managed
great risks associated with the politics, technology, society and economy situations. Few new
efficient strategy related to energy benefits the industry in several ways and also helos to manage
the high cost related to development and extraction of the resources. All the technology
advancements have affected the work in a positive way and also helped in improving the
working conditions.
Emerging technology
advancements in technology have made a great advancements in the petroleum industry and
natural gas industry. New technology has made the equipment’s more efficient which has
improvised the crude oil and gas methods in a great way (Mitchell, Marcel and Mitchell, 2012).
They have erupted the old ways of data collection and research related to the work. It has also
increased the performance level and the amount of productivity. Technology has allowed the
industries to store their data at a same place which can be availed easily whenever required. new
technology has created thousands of opportunities and allowed the user to re- imagine the work
conditions which can be much better and efficient fundamentally (Ovadia, 2012). Technology
has helped the industry to build energy efficient resources meanwhile it has also helped to obtain
many different type of resources from each type of location.
Emerging market and industry
Current market plays an important role in the oil and gas industry. Economy decides the low or

Emerging Trends
high prices of these natural resources (Shuen, Feiler and Teece, 2014). Fluctuation in economy
can produce fluctuations in the petroleum price which eventually affects the rate of production of
petroleum. Market opportunities are better under the greater economy which allows the
petroleum industry to play a bigger game (Teka, 2012). Good economy will result into more
demands from the commodities which means bigger projects and high profit. It will increase the
productivity rate and allows the managers to help the industry grow and maximize the benefit.
With bigger market opportunities comes great exploration capability and it will eventually open
lots of new options for the petroleum industry (Yan, A. and Luo, 2016). The ability to manage
the organization can help this industry to achieve several benefits like competitive advantages
and growth in the business thus increasing the performance level.
Critical discussion
Oil and gas industry makes a great contribution to the world’s economy which makes it very
important for the global community (Kilian, 2016). The following report contains some
significant matters that can impact the oil and gas industry and further challenge the industry in
several ways. Oil and gas have been one of the major energy sources for a very long time. Due to
increase in demands of these natural resources there are so many challenges faced by this
industry and to tackle this, a re-evaluation of the policies associated with the following industry
has been done. These policies can be based on the political environment, a technological point of
view, economy issues on the global level. All these points and their impact on the industry is as
follows:
Political Environments
Political environments play a major role in the oil and gas industry, it can affect the business in
several ways. There is always uncertainty in the oil industry because of random political changes

Emerging Trends
(Gordon, 2014). The changes made by the government in the field of natural resources or the
energy resources carry a little bit of risk since all these changes can make the industry unstable
for a little while. All the laws cover the working of the oil industry in each and every aspects.
There are three major laws which handle the oil and gas industry. These laws are, " Downstream
energy law and policy", Environmental law and policy for natural resources and energy”,
International and comparative petroleum law and policy” etcetera. All these policies can leave a
major impact, for instance, climate policies can affect the supply and the number of demands and
create a major uncertainty. It also gives rise to the geopolitical conflicts and therefore raises
political instability. Countries like Saudi posses around 90% share of the oil reserves which leads
to them owning around 80% of oil and gas reserves. Since a single country posses such a huge
amount of shares, therefore, it might lead to civil wars between countries. It also gives rise to the
corruption between different political parties. Most of the countries rely on an organization of
petroleum exporting countries or OPEC (Maamary, Kazem and Chaichan, 2017). OPEC is
currently focused on unifying the policies associated with the petroleum industry, given by the
different member countries. This unification of policies ensures the supply of petroleum in such
a way that it is efficient, economic and continuous. But this policy leaves a major impact on the
countries petroleum supply and demand condition. For instance, this policy can result in a low
price of oil due to high production or vice versa. The oil market is on the verge of manipulation.
New political environment and tax policies can also affect the industry in a few major ways.
Technological advancements
technology advancements can affect the oil and gas industry in two different ways. Technology
advancements affect both positively and negatively.
talking about the negative impacts, it can create few major barriers like, there can be uncertainty

Emerging Trends
over the prices of oil and gas, cost of development can be high, creates the shortage of skills,
funding can be insufficient, too stringing regulations or uncertainty in returns and purchases
(Cheon, Lackner and Urpelainen, 2015). One of the major impacts of technology advancement is
a high cost of developing and equipment’s which can affect the budget significantly. On the
other hand, despite having so many negative points there are many benefits too. Technology has
made collection and storage of data easier than before most of the company instead of spending
more on research and development are trying to spend more on technology advancements.
Advanced technology has fueled a better and secure future for the petroleum industry.
Technology advance helps so many regions of oil and gas industry like research and
developments on the fundamental level, transportation effectiveness, supply and demands of oil
and natural gas and help with the industrial markets etcetera. Technology advancements help the
companies with managing the large data and analytics and therefore provides an insight towards
a better vision and uncover values (Hiatt, Grandy and Lee, 2015). It also provides security to
data and computes it safely over a cloud. It is an easier way to transfer data from one source to
another securely along with getting access to data from anywhere. It also enables cost-effective
and gives the power to demand data whenever required.
technology provides well modifies equipment which can help the oil and gas industry to make
the process effective like, providing amazing drilling strategies, proper location, and many more
features. In oil and gas industry the basic part is to spot the location of the natural resources and
then collect them carefully. This whole procedure can be completed with the help of new
technology and it’s features which makes it much easier.
Global economic issues

Emerging Trends
There is a significant connection between the global economy and the oil and gas industry. That
is why there is a continuous interaction between both these things. It can be said that the increase
in economic growth on a global level will drive the higher demand for oil and gas consumption
or vice versa (Huisingh, Zhang, Moore, Qiao and Li, 2015). The price of oil depends on the
supply or demand of different commodity on different levels. Global economy can affect the oil
and gas industry in several ways in several ways. Due to an uneven share of oil reserve share, a
civil war may arise. Higher production of oil leads to a lower price which affects the economy
severely. It might lead to over debt condition and affect several countries of OECD. To define
the feasibility of any economy, oil and gas industry are the primary factor to measure so (Hu and
Xu, 2013). Many oil countries are in a huge debt because of the current period of low prices of
oil and natural gas. Low prices of oil affect the global economy and therefore there are more
chances that the prices of oil and gas can fall more (Rockström et al., 2017). To better explain
the situation take an example of transport services, for instance, if there is a downfall in oil prices
then transport costs will decrease and it will become cheaper than usual and that can affect the
economy in the form of taxes or revenues. On the other hand, if the prices are high then that also
can affect the economy because of less profit. Mainly the pricing strategy affects the global
economy (Harjoto and Jo, 2015). The pricing strategy of crude oil and gas depends on several
factors like, cost of production, political interference, over budget, government policies that
affect the transport or supply etcetera. On the other hand, there is another issue that is energy
issue so to basically save the energy, the government has launched few policies in order to make
the energy production efficiency.
Critical evaluation of the identified themes

Emerging Trends
All these factors can affect the operational and strategic decision making of the oil and gas
industry in several ways which are discussed as follows (Fingas, 2016). Political interference can
turn the decision-making situation into a quite difficult situation. It makes it uncertain that is why
it is very hard to come up with any strategy or operation management thoughts. Another impact
is from the climate or environmental policies that can affect the oil and gas industry in the form
of supply and demand restriction. Although technology advancement leaves a positive impact
and help in the benefit for the oil industry there are some issues that can affect the working of
this industry like, technical problems, server issues, lack of RD facilities etcetera. Even a little
technical issue can overturn the whole procedure and can also ruin the progress. Lack of updates
and not upgrading the system can be the problem (Dagher, 2014). Then comes the economy
issue. Global economy factors decide the pricing strategy of the oil and gas, therefore, the
managers of the petroleum industry have to always make their decision on the basis of the global
economy's current situation. Random fluctuations in the economy rate affect the operation
decisions significantly.
Recommendations
All these issues affect the working of oil and natural gas industry in one way or another. Below
mentioned are several recommendations to overcome these situations.
a first concern is political issues and their impact, in order to overcome these issues the
management should follow all the rules passed by the government and work according to these
laws. Actually working according to the government will help the management to run the
operations smoothly. Management can even introduce some efficient ways to save up the cost of
building energy sufficient methods.
another concern is technology advancements and it impacts. Due to randomly occurring

Emerging Trends
technology problems, the management can hire an expert or IT software engineer who can help
with the problem and come up with better solutions to the problem. In order to solve the network
issues or the equipment quality issues, the management should choose the better service
provider. Global economic changes can affect the decision-making of the management and to
solve this there are many different ways. Building a strong relationship with another company
who runs a petroleum-associated business can help the company to make its financial condition
better. Another way is to implement excellence programs for the organization.

Emerging Trends
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