Question

Oil & Gas Industry

1.Given the Larger Environment and Industry Structure, Your Prediction of what the Industry will look like in 10 years from today.

------ Strategic Management Course , MBA

Answer 1

In ten years from now, the Oil and Gas industry will not be as it is right now. The increased awareness and concern of global warming will reduce the people using these fuels and switch to more eco-friendly products like Solar and wind energy.

Increased substitutes for the Oil and Gas in the market will also have a downward pressure in the Oil market and Gas market. As more and more people are using environment-friendly goods the demand will fall and this makes the future of oil and Gas not very bright. Ten years from now we will be witnessing this transition to more cleaner fuel in the world.

The oil and Gas industry includes exploration, production, Transporation, refining and distribution of crude. Taking into account all the above factors the production, refining and distribution will be largely hit. And there will be very limited exploration and transportation form the known reserves we already have. It will lead to job losses and even bankruptcy of the export economy heavily dependent on oil. For example, Venezuela. The industry will look to become more efficient and human force will be replaced by more and more machines to minimize the cost and increase the profit.