Increasing global demand for energy and subsequent high prices have created a robust environment for oil and gas producers. At the same time, high prices have had an adverse effect on the downstream sector as the cost of raw materials impacted refining margins.
According to Ernst & Young’s, demand is expected to drive industry transformation for 2008 in the following ways:
• Increased activity on the part of National Oil Companies;
• Unprecedented competition for reserves;
• Increased emphasis on enterprise-wide risk management;
• High-volume and high-priced transaction activity; and
• Expanded use of International Financial Reporting Standards.
Ernst & Young’s Global Oil & Gas Center works with companies throughout the world, helping them succeed in the ever-evolving oil and gas business. Drawing from industry experience gained from working with our oil and gas clients, the center’s practitioners offer the following assessment of the oil and gas industry in the year ahead. (full article)