Oil company

Oil Industry and the Challenges Faced

Oil industry has served as the backbone of energy sector for ages. Oil and gas has been vital sources of energy ever since the advantages of these natural resources have been recognized. As Naturally extracted energy resources, Oil and Gas had been in abundant and therefore the extraction was also in massive quantity.

Present Scenario

Even though the termination of this industry is still late, oil industry is transforming historically according to the facts at hand. None of the experts could negate the point that oil industry will eventually be facing several expected ecological and peripheral pressures. In order to steer successfully through this change, the leaders need to have to deploy a smart and a strategic mechanism.

Challenges

Oil industry faced a massive drop in oil prices in 2015 end, which was a decline of 60% in comparison to its prices in summer 2014. It went below $40 (US Dollar). Extensive supply of oil but dubious growth of economy has hampered the normal demand generation across the world. That count of rigs surged in July 2014 and that was 1,382 rigs. In February the count was at 1,018. The major supply of oil comes from Saudi Arabia and the oil exporters are trying to somehow subdue or drive out the small scale oil producers in USA. This imbalance could be worsened if Saudi Arabia doesn’t manage its supply in the hope of raising its market share and is much less concerned regarding the turmoil in the oil prices.

Conclusion

Oil industry has always been a very volatile industry with severe price fluctuations. Hence investing in this industry could be a risky way to undertake.

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