High prices will result in record hgh revenues for much of the energy industry this year. Companies will face looming challenges, though, and how they respond to them will shape the industry for years to come, according to a new report by Deloitte.
The trend towards resource nationalism is perhaps the single greatest threat to the profits of the oil and gas industry, though looming legislative and regulatory changes may also curtail the record profits the industry has enjoyed recently.
Unfortunately for Integrated Oil & Gas Companies (IOCs) and
independents, access to oil reserves is becoming increasingly constrained as major suppliers such as in Russia, Venezuela, and countries in the Middle East nationalize their industries, Deloitte says.
IOCs must improve the way they partner with foreign governments and National Oil Companies
Emphasis, according to the report, should be put on operational efficiency.Utility companies will experience a more challenging year in 2008...MORE