Impact of Emerging Themes on Oil and Gas Companies' Strategies

This report examines the impact of emerging themes on the oil and gas industry, focusing on societal shifts, work environment changes, technological advancements, and market dynamics. It analyzes a case study by Primeast, identifying key challenges such as the 3D effect, carbon reduction targets, attracting investments, improving safety standards, and adapting to change. The report explores how these themes influence organizational policies and strategic decision-making, considering factors like demographic trends, government regulations, and technological innovations like digital revolution. It highlights the importance of adapting to changes through modern technology and industrial revolution to enhance efficiency and address issues related to oil extraction and energy conservation. The report provides recommendations for addressing these challenges and adapting to the evolving industry landscape.

Running head: EMERGING THEMES
Emerging Themes
Name of the Student
Name of the University
Author Note

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Table of Contents
1. Introduction......................................................................................................................2
2. Findings and Analysis......................................................................................................2
2.1. Task 1: Impact of the emerging themes....................................................................2
2.1.1. Society...............................................................................................................3
2.1.2. Work Environment............................................................................................4
2.1.3. Technology........................................................................................................5
2.1.4. Industry and Market...........................................................................................7
2.2. Task 2: Effect of Emerging Themes on Strategic Decision Making........................8
2.3. Task 3: Recommendations......................................................................................10
Conclusion.........................................................................................................................12
References..........................................................................................................................13

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1. Introduction
The oil and gas companies are facing major challenges in the recent years as identified by
Primeast. The purpose of the report is to evaluate the challenges faced by the oil and gas
companies and to relate it to the four pillars of emerging themes which are society, work
environment, technology and industry and market. For this assignment, a case study by Primeast
has been chosen that provides the necessary details about the top five challenges faced by oil and
gas companies. The top five challenges that the oil and gas sector is currently facing includes the
problem of 3D effect, handling the government pressure of introducing carbon reduction targets,
attracting investments, improving the safety standards and adapting to change (Primeast 2018).
In this report, the emerging themes associated with the chosen case study will be evaluated in
order to identify the ways in which the identified themes can affect the existing organizational
policies (Marcel 2016). The futuristic impacts of emerging theme are discussed in the following
paragraphs.
2. Findings and Analysis
The aim of this report is to analyse and outline the different ways through which certain
emerging themes might impact the current business strategies in the oil and gas sector. In this
section of the report, critical evaluation of the case study is undertaken in order examine the
appropriateness of the existing organizational policies and procedures. In order to evaluate the
impact of emerging themes in oil and gas companies, the case study is analysed on basis of four
pillars of emerging themes are focused on, which are society, work environment, technology,
industry and market.
2.1. Task 1: Impact of the emerging themes

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2.1.1. Society
One of the main pillars of emerging theme is Society. The society involves the people and
the current trends affecting the people. Thus, society is one of the major pillars of emerging
theme. “Society” deals with demographic changes and social trend shifts. The articles analyses
the demographic changes and the social trends. The demographic trend that is identified from is
a direct effect of the emerging theme. Demographic trend can be defined as the statistics of
human population. The article by Primeast identifies the demographic trends affecting the oil and
gas industry leading to the emerging theme of use of modern technology. The high demand of oil
due to increase in population worldwide considerably affects the process of oil production. The
existing oil sources tend to dry up leading to the search for new sources (Shuen, Feiler and Teece
2014). The search and new sources and extraction of crude oil from those sources need the
involvement of technology. The industry need to redesign their business strategies extraction of
oil from those sources is possible. In this context, industrial revolution can be discussed which
includes use of modern tools and automation. Industrial revolution furthermore, has resulted in
systematisation of different processes that seeks to improve the efficiency and performance (El-
Diasty and Ragab 2013).
In this context, the changes in social trends are needed to be analysed as well. From the
article, it is identified that there have been a shift in management of the organizational policies
and procedures associated with the social trends (Howard and Probert 2014). The social trend
that is identified from the case study includes increase in the number of consumers of oil and
goods over the years. In order to deal with the social trend, it is needed to bring about
technological innovation for better management of the organizational policies and procedures as
the existing organizational policies and procedures need a shift. This can be achieved by

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automation of core organizational processes associated with the process of energy production.
The companies in oil and gas sector that are facing similar problems should ensure accurate
computerisation mainly in the working environment in order to mitigate the problems (Smith and
Richards 2015). Thus industrial revolution is essential in order to promote this type of
effectiveness in the energy sectors so that the energy products and services can be delivered at an
affordable rate (Williams, Kilanski and Muller 2014). Demographic changes can impact the
current business strategies of oil and gas sector. As identified by Primeast, it can be concluded
that the increase in demand for oils, it is essential to discover and utilize the new sources.
However, the 3D effect makes it difficult for the business organizations to extract oils from new
sources (Phillips, Hailwood and Brooks 2016). In order to deal with this problems, many oil and
gas corporation are attempting to resolve the issue by joint ventures. Thus, these changes can
considerably affect the existing organisational policies and practises. The change in the existing
policies and practises is related to the government pressure of improving safety standards in oil
and gas sector. One major change in current business strategy of oil and gas sector is to set
ambitious carbon reduction targets (Yusuf et al. 2014). As per the change in the business
strategies followed, the oil and gas industry is being scrutinised closely to device newer ways for
extracting the natural resources thus minimising the pollution.
2.1.2. Work Environment
Work environment is used to describe the surrounding conditions in which an
organization or a company operates. The work environment of oil and gas industry is near to the
site of oil extraction. However, with the drying up of the existing oil wells, the work
environment of oil and gas industry needs a modification (Rehm et al. 2013). This has a

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significant effect on the existing organizational policies and procedure which includes
modification in the process of oil extraction.
Political Environment and Legal transformation is related to the work environment. From
the analysis by Primeast, it is identified that the oil and gas sector is currently facing problems
with their existing policies and procedures. This is mainly because of the increasing government
pressure for management of carbon reduction (Kumar and Rabinovitch 2013). Government has
slashed the carbon reduction target in order to reduce emissions associated with oil and gas.
Failing of adhering to the carbon reduction targets, the oil and gas companies can experience
legal issues. The oil and gas industries have observed legal transformation on basis of the carbon
reduction targets.
Thus, it can be said that political environment and legal themes have a large impact on
the existing policies and procedures in oil and gas industry. Thus, the existing business policies
and procedures are needed to be updated according to the shift in organizational policies and
procedures, which includes a shift in the work environment. Since the existing oil wells are
drying up, it is essential to search for newer sources which will indicate a shift in the work
environment.
2.1.3. Technology
There has been a considerable shift in the use of technology related to oil and gas
industries. The pillar “technology” relates to the application of scientific knowledge that is used
for practical purposes. The technological advancements that has been identified from the case
study indicates the major emerging themes associated with technology. The article discusses the
technological advancements that are seen in the oil and gas sector. The technological

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advancements in oil and gas sector are a direct effect of the 3D effects along with other
significant problems such as drying up of the existing wells. Digital revolution is one of the key
emerging themes in oil and gas industry. This is mainly because technological developments and
their applications help in providing digital transformative opportunities that in turn help in easier
management of operations (Perrons and Hems 2013). The opportunities provided by the
technological advancements provide paramount efficiency in working environment and in
industry at a large scale (Guliev, Kerimov and Mustaev 2016). This is possible since the
automated applications in the contemporary digital environment have the capability to
substantially enhance the energy consumption efficiency, which is one of the major aspects of
decreasing natural resources of oil and gas and in escalating the energy demand (Coons et al.
2014). This can be achieved by the energy sector by employing different platforms of social
media and similar other digital or social media channels for educating the society regarding the
need of energy conservation (Finšgar and Jackson 2014). The digital strategies can allow the oil
and gas sector to understand the social behaviours and attitudes that can help in accomplishing
energy security as well as sustainability (Savitz 2013). Thus, this digital revolution relates to the
emerging theme of technological advancements that can considerably impact the business
strategies including the appropriateness of the existing organisational policies and practices. One
major problem that oil and gas sectors are currently facing includes dealing with the 3D effect
(Badiru and Osisanya 2016). It is considerably difficult to find new sources of oils and therefore,
the use of modern technology is needed. The technological advancements can help in mitigation
of these problems and can further help in enhancing the business processes of oil and gas sector.
As a direct effect of lack of technological innovation in oil and gas sector, the current business
strategy that needs to be changed is related to the investments (Ford, Steen and Verreynne 2014).

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Adapting to change is therefore considered to be major change in the business strategy of the
project. The changes include the need of making use of modern technology and digital revolution
in the operations of oil and gas industry (Lake et al. 2014). In order to mitigate the problems
faced as a result of the emerging themes, there is a need for the organization to adapt to the
required changes (Yusuf et al. 2014). For instance, social media platforms can be used to educate
the society about the conservation of energy. The industrial revolution seeks to improve human
performances, efficiency and production. Thus, computerisation in energy sectors allows a
particular organization to achieve a maximum energy production, and reduction in the cost
(Badiru and Osisanya 2016). This industrial revolution although might add to the complexity of
the existing business strategies, the automaton of core organizational processes can help in
upturning the effectiveness of oil and gas operations (Ford, Steen and Verreynne 2014). The use
of advanced technology furthermore, enables the energy sector to make use of different strategies
in reduction of high risk.
2.1.4. Industry and Market
The industry and market details the industrial environment in which the industry is based
on. In this context, the industry globalization and global economic issues can be discussed.
Globalization can be considered as a key trend in business world, and is a result of the
environmental factors that are driving the companies towards operating in a homogenous
worldwide market (Williams, Kilanski and Muller 2014). From the article, the global economic
issues and trends of industry globalization can be identified. With the increase in global oil
demands, managing the increasing oil demand becomes essential. The case study by Primeast
identifies the difficulties that are currently faced by the oil and gas sector in attracting
investments. The emerging theme of making use of advanced technology has an effect on

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attracting investments adding to the global economic issues. In industry and market refers to the
trends that are currently in practise in the oil and sector that affect the market position of the
industry. The use of modern technology can help in dealing with a number of problems that are
faced by the sector. Thus, the merging theme that is identified in the article has a profound effect
on the business of oil and gas sector.
2.2. Task 2: Effect of Emerging Themes on Strategic Decision Making
The emerging themes identified in the previous section have a large affect on the
operational and strategic decision making of oil and gas industries. In this context, the shift in
the decision making strategies associated with the operations in oil and gas industry can be
discussed. As identified by Primeast, the need for dealing with the 3D effect and excessive
demand for the oil due to demographic changes has revolutionized the way of extracting oil in
the last few years. High risk production strategies are designed in this sector to improve the
effectiveness of distribution activities and energy production (Klass and Meinhardt 2014). The
identified issues have a considerable affect on the strategic decision-making process oil and gas
companies in next five years. These issues if not addressed can have a large impact on the
organisational objectives, operations and relevant stakeholders associated with the project.
With the change in the operational processes and process of oil extraction, decision
making strategies related to production of refined oils are bound to change as well, which in turn
will affect the stakeholders associated with the industry. As an effect of the emerging themes and
its impact on technological advancements and demographic changes, legal issues, economic
environment, the strategic decision making process in oil and gas sector can change in next five
years. Researches prove that the oil and gas industry is expected to have greatest difficulty in

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developing world (Ford, Steen and Verreynne 2014). This is because one significant challenge
that is observed by the oil and gas industry is production of refined industrial products and crude
oil at a lower cost. Production of the crude oil and refined products in lower prices is necessary
in order to stay competitive in the market (Popoola et al. 2013). One of the major challenges
faced by this industry is to reduce the cost of production by reducing the cost of extraction and
refining. Thus, in order to increase the sustainability and the competitive advantage in the market
in the next five years, it is quite significant to reduce the cost of production (Daofu et al. 2013).
The reduction in the cost of production in order to remain competitive is one of the main
problems faced by the oil and gas industry (Yusuf et al. 2014). These are certain major decisions
associated with the operation of oil and gas sector. The decision making process is expected to
change drastically in next five years. The most prominent issues associated with this sector such
as drying up of the existing oil wells have already started to address the decision making ability
in this business sector.
The emerging theme associated with demographic changes has a profound effect on oil
and gas industry and its decision making process. With the increase in population, the oil and
gas industry is forced to redesign many of their operational processes that has a large impact
on the decision making strategies. It is seen that the oil and gas industry has been a large
consumer of water and energy resources. Thus, it is necessary for the oil and gas industry to
rethink abstraction to reduce pollution (Klass and Meinhardt 2014). In order to manage and
control the pollution and reduce the environmental damage, the oil and gas industry needs to
follow certain rules as dictated by the government, this adds to the difficulties that are observed
by oil and gas industry. This can considerably affect the stakeholders associated with this
industry thereby affecting the decision-making ability. Thus, the emerging themes have already

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started to affect the decision making process of this sector over the next five years as certain
crucial decisions regarding the changes in oil and gas sector is needed to be taken.
As a result of the redesigning the methods and operational strategies of oil and gas
industry, the decision making strategies of oil and gas industry will see a reform (Badiru and
Osisanya 2016). However, in order to manage the issues associated with the oil and gas industry,
the organisational objectives, operations and practises are needed to be revised. Currently the oil
and gas industry is gradually undergoing changes in their operations and practises by adapting to
newer methods of extraction of oils.
2.3. Task 3: Recommendations
In order to deal with the changes and the emerging themes, the oil and gas sector needs to
redesign their business strategies according to the changes, requirements and the need for the
business sector. The recommendations will help the managers to mitigate the issues identified in
the oil and gas sector. Certain recommendations for redesigning the course of action within the
broad sector for managing the effects and impact of the identified emerging themes are discussed
in the following paragraphs-
Redesigning the business Models: The energy Companies need to adjust their business
models, for dealing with the operational inefficiencies associated with the oil and gas industry.
The oil and gas industry has survived a tough phase as it was difficult to plan for future and
make strategic decisions accordingly. This include, embracing newer technologies as identified
by Primeast, one of which is cutting edge technology. For that, it is essential to hire highly
skilled engineers.

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Use of Modernised Equipments: the use of modernised equipments and tools for dealing
the 3D effect is another recommendation in this field. This is essential since the oil and gas
businesses are finding new sources that are extremely hard to access. The use of modernised
tools is necessary in order to extract oils from deep oils that are difficult to drill. Extraction of
oils from new sources requires cutting edge technology and skilled engineers. Therefore,
adoption of modernised tools and equipments are necessary in order to extract oil from new
sources.
Improvement in Safety Standards: Primeast has identified another need in oil and gas
sector that was introduced in the year 2013. This need is improving the safety standards
associated with the industry. Improvement in the safety standards is another effect of the
demographic changes. Therefore, it is recommended that the reduction in environmental
pollution during oil extraction should be focused on. Government has been increasingly strict
over the past few years in order to reduce the environmental pollution during oil extraction.
Handling of this increasing government pressure can be hard to deal with as governments across
the globe are introducing ambitious carbon reduction targets to slash the emissions. In order to
ensure, that the oil and gas industry adhere to the strict guideline, the industry is closely
scrutinised. Thus, the use of newer ways for extraction of oils is necessary to be considered.
Appropriate Identification of the Challenges: It is further recommended that it is
necessary to identify the major challenges that the oil and gas sector is currently facing so
accurate business strategies can be identified. Skilled individuals and proper understanding of the
technological requirements is necessary in order to make use of the latest technology. The case
study organization Primeast have worked closely with the largest oil and Gas Corporation and
thus issues identified by Primeast can be considered as the most significant one.

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Adapting to change : adapting to the changes is another recommendation in the field of
the oil and gas. Although there is a broad challenge in adapting to change, it will be absolute
necessary for the oil the gas industry in future. This is particularly because adapting to change
can help in mitigation of major issues associated with the extraction of crude oil in production of
petroleum.
Conclusion
The report discusses the four pillars of emerging themes which are society, work environment,
technology, industry and market. The report identifies the emerging themes in oil and gas sector
and its effect in the operational and business strategies of oil and gas sector. The report discusses
the top five issues faced by the oil and gas industry in recent years. The report identifies the need
of making use of latest technology so that the issues like 3D effect can be addressed. One of the
most significant need for managing these issues include the need for adapting to the changes.
Thus, Primeast has identified the importance of knowledge management in dealing with the
major identified issues associated with the oil and gas industry.

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