If you are at all aware of the challenges facing the oil and gas industry, then you know that the next decade or two will be times to test their ingenuity. Everything that is connected to that industry, from high pressure shaft seal manufacturers to farmers who lease the land for oil wells will see the changes affect their industry as well.
While the challenges are great, the wealth and knowledge that this industry controls mean they can surmount it, if they meet the trials with the right tools. So, what are the biggest challenges facing this industry right now, you might ask. Whether you are thinking of investing in this industry or working in it, you might want to be aware of these challenges to its continued success.
Finding the Resources
As most of us are aware, the easy oil is gone and now what is left for most of the industry is oil and gas that is either complicated to extract, such as shale oil, or deep underground. Finding this oil and discovering new and effective ways to extract it require rethinking the industry. It will require more top quality engineers, already something that is in short supply as more technology industries snap them up.
It will also need some cutting-edge technology that can approach the many problems the industry must solve in order to remain solvent. These two primary resources are in short supply, getting more expensive all the time and the competition for them is getting hot. Today many oil industries are sponsoring promising engineering students and creative inventors to find the talent young, and groom it for their industry.
Negotiating Government Restrictions
The growing awareness of climate change and how the oil and gas industry play a role in it has meant more regulations for the industry. It also means that an industry that once had a healthy relationship with important law makers are now having to scramble to be heard.
As more countries follow Canada’s lead in requiring a closer restriction on the creation of greenhouse gases at the source, the industry will need to change their methods of extraction. This can be done, and many of the major players in the industry are answering this need by diversifying their investments to include alternative energy solutions as this sector grows in importance.
Bringing In More Investment
The entire extraction industry has been struggling with finding new investors as negotiations with governments and new restrictions cut back on shareholder profits. But if they are to survive they will need the investment to fund all of the changes named above. From better technology for finding oil and gas to engineers that develop the new mines, wells and extraction methods that lower their impact on the environment, the challenges are great.
As these new methods come online, the industry is finding it easier to show investors that there is a way forward in this new atmosphere of regulation and change. From creating new markets in developing worlds to designing hybrids of renewable and non-renewable energy sources, the industry is reinventing itself to fit with the new world it faces. As it does, the investments and resources will be developed as well, to allow it to find its place in the new greener world they are finding themselves forced to be a part of and in fact perhaps can lead the charge to create.