Question

In detail explain, what are the challenges/competition facing the Oil & Gas industry over the next 10 years and whether it has a future?

Answer 1

The challenges/competition facing the Oil & Gas industry over the next 10 years

Competition for the talent

As it happens with any type of industry, competition for the top talent in this industry is very fierce, as with the reducing and aging talent pool of this industry, the oil industries are investing more and more to attract new and young talent in this sector. As everybody knows that renewables are the new energy trend in the near future, all the talent is shifting towards the development of renewable energies rather than oil industry. Additionally oil industries have increased their base compensation packages along with perks to attract talent more towards it.

However, Oil Companies are facing challenges in training of new and young individuals of next generation as all the experience and talent lies with the aging and old age group people.

Obituary of the oil industry

Although with the new found resources and unexplored resources, there are several threats to oil industries which pose a question like is this the end of it. As we all know these days, more emphasis is being given on renewables/sustainable form of energy as well as high fluctuation in crude oil, cost of raw material, cost of wages collectively poses a serious threat to oil industries in the near future in maintaining competitive prices as well as diversifying/exploring their market.

Even with the rise of green technologies like the electric car market, fossil fuels still have a major part to play in the next few decades of global industry.

In the next 3 decades or by 2050, oil industries will face a lot of problems as many of the giant organization has already announced their 2050 agenda of becoming carbon neutral companies like TOTAL OIL. Till 2050, it is estimated that the world energy demand from oil industries will be reduced to 44% from 53% currently. Investments are being made for the more sustainable, green processes. It is also estimated to that the fossil fuel reserve will last till 2050 only.