Globally we are experiencing a time of extraordinary economic and political turbulence which has led to many challenges for the oil & gas industry. The struggling European Refinery sector for example depends evermore on the services of the consultancy; particularly their strategic vision and advisory services as upstream activity is extremely limited in Europe. As a result, owners and operators of European refineries need forward thinking and practical advice from professionals who understand their businesses; Consultancies.
The Oil and Gas industry, like any other, relies on expert advice in the areas of operational excellence, but perhaps more than any other demands domain expert knowledge. With a retiring workforce, and the damaged reputation of the industry as a whole creating barriers for recruiting the new generation of O&G experts, demand for Management consulting expertise across technical discipline and process optimisation is greater than ever before. Despite the struggles within the O&G industry, relative to other global markets business is booming. This is of course a market opportunity that the Consultancy industry will compete for with zeal, and although the motivations are of course financial, their benefit will be evident to the Industry, it`s workforce and the economy.
It is not only the Operator sector that can benefit from Consultancy input. Of course all industry is driven by the thirst for profit, and any expert consultancy that can provide strategic guidance and management in implementing new models to streamline process, optimise productivity (be it human or hydrocarbon production) and increase market share holds an integral place in the market. But what about National Oil Companies? It can be said of state owned oil companies that if national reserves are great, and oil is still pumping out of the ground then the impetus to maximise production can be lacking. Consultancy firms have played a major hand in realigning NOC approach to production with that of the operators, changing process and internal culture not only for the betterment of the company but also the wider economy. By encouraging NOCs in the Middle East in particular to adopt the methods of the most successful exploration majors in the west, Production Optimisation is now moving towards the same level of prominence as within Operators, meaning a broader wealth for state and economy.
Whatever your political or ethical standpoint, modern life remains heavily dependent on the production and exploitation of hydrocarbons. With dwindling reserves globally, It is not only the Super-Majors and National Oil Companies of the world that benefit from the expertise of Consultancies. State and economy, infrastructure and environment, local communities and individuals all reap the benefits of hydrocarbon production. Any industry that can help perpetuate the production of hydrocarbons whilst adding critical advisory value to HSE is vital to sustaining the global economy, and with it, our way of life.