Boom to bust – the familiar cycle for the commodity business of oil and gas – is once again rearing its head. Oil prices have recently declined over 50% from their peak. Natural gas prices are following suit, with the excess supply in the market. How low will prices go? How long will the price decline last? These are the burning questions of the day. But industry experts know that to provide products for the future, the planning and investment must continue today. Throughout the value chain, oil and gas projects take years to develop, and price fluctuations are all a part of the process. At PwC, our global oil and gas professionals understand the challenges that our clients face, along with the uncertainties and risks they have to manage, and we provide the help that companies need to succeed throughout the business cycle.
The energy industry requires long lead times for new projects, and even though the current global economy is struggling, the world’s population continues to grow. With this growth, energy demand will increase. Weighing the risks versus benefits of new projects, new products and how much capital to invest, oil and gas companies also have to consider regulatory, safety and environmental concerns. Balancing the need to supply the world with hydrocarbons, companies are also looking at investments in alternative energy sources, including unconventional sources, biofuels, renewable energy sources, and ways to improve energy efficiency.
So at PwC, we are not only watching these developments in the industry, but we are analysing these changes from the perspective of how they will impact our clients, and how we can best help companies prepare and manage the changes. We examine the issues, and build teams of subject matter specialists who develop appropriate solutions through our assurance, tax and advisory services. Our experienced professionals are on the ground in 158 countries around the world contributing local insight and understanding.