THOUGHTS

Biggest Challenges Facing the Oil and Gas Companies in 2019

Jul 5, 2019

The oil and gas companies operate within complex national and global frameworks. Although expansion into new geographies such as ultra-deepwater drilling is opening up new avenues for revenue growth, it is also simultaneously increasing the complexity and risk of business operations. Moreover, the dynamic regulatory frameworks imposed by various national governments on oil and gas companies is adding to the scrutiny within which oil and gas companies are operating in.

Additionally, factors like China’s gradual shift away from coal and an insatiable appetite for liquefied natural gas (LNG) will bring unusual challenges to the marketplace by the end of this year. In response, top oil and gas companies and industry leaders will need to review their strategy to factor in a widely anticipated slowdown in economic growth, an increasing focus on renewables, a likely trade war, and tension between the U.S. and Iran.

oil and gas companies

Oil and gas industry challenges 2019

Impact of trade wars

The 25 per cent hike in steel tariff that was meant to drive jobs back to the United States and encourage domestic steel producers has consequently led to a rise in the price of specialty tubing and pipelines. This has given rise to the possibility of cost inflation in future oil and gas projects and turnarounds alike. Increased steel costs eventually have an impact on the overall price of pipeline and will be reflected in a gradually increased price for products in the oil and gas industry.

Planning to invest in the oil and gas industry? Request a free brochure to know how our market intelligence solutions can help you make the right investment decisions. 

Reducing costs to remain competitive

Producing at a lower cost to stay competitive in the market is one of the key challenges facing oil and gas companies. Optimizing production systems and environmental utilities on the current operating sites is, therefore, a priority for oil companies. This would help maximize production efficiency, reduce the costs of extraction and refining and thereby offset the exploration costs.

Sustainability challenges

In order to ensure sustainability, oil and gas companies are increasingly looking to extend the life of mature sites and are also compelled to seek new sources of oil or gas for which extraction, transport and refining are highly complex and costly. To achieve this, they also need to achieve 100% reliability of their plants which includes no unplanned shutdowns, increased output, and secure industrial assets.

Infiniti’s expertise in offering market intelligence solutions has made the company a market leader in helping top companies around the world to overcome their key business challenges.

Request a free proposal to learn more about Infiniti’s portfolio of services for oil and gas companies.

We help our clients make smarter decisions to achieve rapid business growth

Our strength lies in the unrivaled diversity of our international market research teams, innovative research methodologies, and unique viewpoints that merge seamlessly to offer customized solutions for your every business requirement.

Recent Thoughts

Market Sizing – When is it most effective?

Market Sizing – When is it most effective?

Written By: Gaurav Sharma Overview Market Size of a product/service is necessary for every business. But why? It’s an indicator that can help you assess the profit potential of your business. You always want to be a step ahead of your competitor(s) when doing business...

read more

Insights

Our knowledge hub offers exclusive access to a collection of free resources and downloadable articles that provide insights into market developments and details on how our services can benefit your business.