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How will today’s dramatic events affect oil and gas companies tomorrow? - Ernst & Young - United States

How will today’s dramatic events affect oil and gas companies tomorrow?

If you aren’t asking “What if?” today, you may be asking “Why didn’t we prepare for that?” tomorrow.

Photo: Young woman standing on rock beside river, Richmond, Virginia, USA  

The oil and gas industry is driven by the development and delivery of natural resources of unknown quality, quantity and origin. Coupling this with the unexpected events that roiled the global markets over the past year has sent many companies into a tailspin.

In today’s environment, it’s vital that oil and gas stakeholders factor more extreme scenarios into their risk management plans.


To help you prepare for the unexpected, we bring you through thought-provoking scenarios for the global economy and possible outcomes, including:

  • What if the world economy succumbs to deflationary pressures due to weak end-user demand?
  • After a year in which the global economy experienced a massive credit crisis, financial market meltdown and global recession, world economies and markets have stabilized. But what if current market strength is only a pause before another deflationary spiral?
  • What if technological breakthroughs lead to weaker demand for conventional energy products?
  • What if a sharp recovery in end-user demand coincides with the stimulatory effects of government spending and a collapsing dollar?
  • What if one or more deflationary or inflationary occurrences actually happen? How will it affect energy prices?

Clearly, high-risk scenarios will produce winners and losers, but a company that can truly identify and assess risk has an enormous advantage over its competitors when faced with adversity. Don’t let today’s tumultuous environment catch you by surprise. Instead, use our report “Exploring “what if” in the oil and gas industry” (pdf, 600.3kb) to consider potential outcomes when building your long-term strategy and contingency plans.

 

 

Photo: Pensive businessman
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