Facing the future 
Published: Oct-20-11

If the year 2011 began with the paradox of high oil prices and good economic growth playing out simultaneously, there are now clear signs of a reversal. GDP growth is slowing across the world, albeit in varying degrees, pointing to a halting and still fragile recovery from what the International Monetary Fund calls the Great Recession.
The International Energy Association now expects oil demand to rise year on year by only 1.2 million barrels per day (b/d) to 89.5 million b/d for the current year. This figure could inch down to 89 million b/d if global growth slows further. The worries about the US economy’s health have now been compounded by ongoing signs of sovereign debt contagion in the eurozone. Essentially, a very uncertain economic and market outlook—some of it reflected already in the downward pressure on oil prices and a tighter demand situation for gas.

I have captured these developments in much greater detail in the latest issue of the Energy Industry Trends Review that I write every quarter. The year 2011 has been a good one so far for the upstream oil sector, thanks to the high oil prices, and the second quarter results show great profitability. But as the focus of the industry shifts to sustainable energy sources and higher cost environments—such as deepwater exploration and production and unconventional oil and gas plays— squeezing profits out of operations is going to get tougher. The ability of the upstream companies to find reserves and bring them online safely and economically will set them apart from the herd.

In this blog, I will not only pick up and analyze current and future energy sector trends, tapping into industry news as well as our own research, but also offer insights into how oil and gas companies need to manage their businesses for high performance in the emerging environment. In addition, this blog will bring home some of the decades of hard-learned experience Accenture has earned by serving the major, national and independent oil and gas companies.

I consider this blog an opportunity for dialogue and discussion. Let me know your thoughts, questions, suggestions and stay tuned to learn more on how to keep ahead of the challenging times. Leave a comment or email me.

Watch the video: Arthur Hanna, Energy Managing Director, discusses the latest trends impacting the oil and gas industry.

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Read the full transcript [PDF, 65.9KB]

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About the Authors

Arthur Hanna
Mr. Hanna is a senior managing director in the Accenture Strategy group focusing on oil and gas. He has led a wide portfolio of work for a variety of...

Dean Forrester
Dean is a Managing Director in Accenture’s Energy industry group based in Houston. He has been involved in many major upstream programs including imp...

Julie Adams
Julie Adams leads Accenture’s Resources and Energy global research team and provides original research support and market insight for the Accenture E...

Monty Mumford
Monty is a manager in Accenture’s Energy industry group based in Houston. He has over 25 years of upstream and midstream experience having led many p...

Richard Holsman
Mr. Holsman is the Global Energy Technology Managing Director and leads Accenture’s Europe, Africa and Latin America technology business for resource...

Brian Richards
Brian Richards is a Senior Manager and Senior Technical Architect in Accenture’s Energy industry group. He is the Energy Innovation Lead for North Am...

Zahra Bahrololoumi
Zahra Bahrololoumi, managing director, Accenture Energy, is based in London. Zahra has deep transformation and delivery experience spanning multiple ...

Tracey Countryman
Tracey leads Accenture’s Plant and Commercial Business Service in North America helping to deliver transformation improvements in client manufacturin...

James Arnott
James Arnott is managing director, Accenture's Resource Operating Group, and leads Accenture Capital Project Services for Europe, Middle East, Africa...

Susy Tamminga
Susy Tamminga is a senior manager in Accenture’s Resources group. She has extensive experience in global business transformation, talent, change mana...

Colin Sloman
Colin Sloman is a managing director, leading Accenture’s Global Human Capital Strategy Group. He has over 25 years’ experience spanning a number of s...

Jeff Miers
Jeff Miers, managing director for Energy—Analytics, is based in Houston, North America. He has 16 years of experience leading consulting and systems ...

Kevin Donaldson
Kevin Donaldson, managing director for Energy—Analytics for Europe, Africa and Latin America is based in London. He has responsibility for the coordi...

Senthil Ramani
Senthil Ramani, managing director for Analytics—Technology for Asia Pacific, is the Accenture Enterprise Services (AES) Business services and Digital...

Valerie Jalufka
Valerie is a Managing Director in Accenture’s Energy industry group based in Houston. She has over 14 years of experience in the Energy industry incl...
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