It is no exaggeration that the energy sector is facing massive upheaval and challenges. The oil and gas industry needs to grapple with social and economic pressures to both maintain their competitive position and additionally be seen as good global citizens.The three main challenges that the resources sector faces include:Reducing costs to remain competitive – resources extraction and production continues to become more expensive, as environmental, regulatory, and operational costs escalate. Optimizing production systems and site management is a renewed priority for these businesses.
Improving performance to promote the valorization of assets – resources companies need to develop ways to extend the life of mature sites and seek new sources for extraction in an efficient and cost-effective way.
Improving the environmental footprint – social pressure demands that resources companies become leaders in sustainability and renewable energy investment. What’s more, resources companies are major consumers of water and energy resources themselves and need to be seen as doing the right thing to be good corporate citizens in the application of those resources.
As noted in a McKinsey report on the state of the oil and gas industry, “This is a moment for oil and gas companies to make thoughtful choices, both to improve their economic and reputational resilience and to consider whether and how to reposition themselves to take advantage of the accelerating low-carbon winds of change.”To read this article in full, please click her
Read More