In the future the oil and gas industry faces numerous challenges. There’s have been some large spills and more environmental concerns in the oil and gas industry recently such as the large BP oil spill in the Gulf of Mexico and other concerns about how we deal with oil and gas in our environment. There are several things that threaten the future of these industries.
Fracking or hydraulic fracturing is raising concerns about earthquakes and the use of water. The fracking industry is trying to address concerns about this practice but it’s unclear if this will be enough. There are many groups that have big concerns about this practice and its impact on our environment. Fracking could be a big game changer in the oil and gas industry but the concerns over this practice might be enough to shut down the practice. The industry needs to ensure that they address the concerns about fracking or they could face a sever backlash in coming years that they may not be able to recover from.
Global Market Volatility
The volatility of the market could impact the amount of oil and gas that’s produced in the world. The economic conditions, wars, and so on have a huge impact on the oil and gas industry as many of the richest counties in oil and gas have economic as well as government instability issues. The instability of the entire world impacts the oil and gas industry going into the future.
The BP oil spill still hangs over the entire oil and gas industry because it paints a bad picture on the entire industry. The fact that any spill, large or small impacts the environment makes it difficult for the oil and gas industry to move into the future. There needs to be stricter regulations and safety precautions taken in this industry. If there are more large spills that grab the world’s attention the entire industry will be under huge pressure to make sweeping changes. People aren’t going to tolerate any more large oil and gas disasters because we have an increased concerns about our fragile environment. Companies will need to focus closely on their operations to ensure they aren’t creating conditions that result in large spills.
10 Main Concerns in Oil and Gas Industry
Here are 10 main concerns going into the future for the oil and gas industry that must be addressed.
• Regulatory and legislative changes which increase cost of compliance or oil and gas companies making it harder to operate
• The volatile cost of oil and gas on the market and the demand for these products
• The need to find new reserves and to expand existing reserves
• The hazards of working o the job such as oil well blowouts, spills and injury or death to personnel
• Natural disasters which shut down operations or make it difficult to get oil and gas out to consumers. The fact that wells or rigs could be destroyed
• Inaccurate estimations of oil reserves which requires more oil to be produced
• Not enough capital to acquire oil and gas or debts to oil producing companies which can’t be paid
• Regulations, health concerns, and impacts on the overall environment from oil and gas drilling and other practices causing backlash against these companies due to increased environmental awareness and understanding
• General concerns about the economy and stability of countries producing oil and gas
• Competition in the industry from energy alternatives
These are some of the concerns the oil and gas industry will need to look at going into the future. Oil and gas should be with us for a long time to come but the entire industry needs to ensure they do the right thing moving forward and address concerns people have with the entire industry.