The oil and gas industry contributes about 2 to 4% of the global economy. Technological advancements have revolutionized the industry and changing its future.These are some of the challenges facing the oil and gas sector.
Aging Workforce
You should note that many companies in this industry have a huge segment of the workforce that is about to retire soon. Thus, as experienced workers quit the industry, new companies must get new contractors and employees who are unfamiliar and less experienced in the industry.
Equipment Reliability
Nowadays, oil and gas firms utilize different techniques to decrease downtime and increase reliability. That is the case with unplanned downtime. When the equipment is run at the optimal ranges as recommend, it is easier to reduce the time spent on repairs and maintenance.
Inspections
In the oil and gas sector, facility and equipment inspections are required on an annual, monthly, and even weekly basis. The inspections may need temporary structures, operational readings, emergency response equipment, and moving equipment.
Large-Scale Events
Equipment isolation, shutdowns, turnarounds, and lockout events need several months of planning, and they can last months. Moreover, start-up and shut down events are common times for the occurrence of accidents. Therefore, there is a need for companies to reduce headaches and save time. Also, they have to ensure that their employees are safe.
Spill Control
You may be surprised to note that leaks and spills are devastating events that an oil and gas company faces. That explains why it is vital to get the supplies required to effectively and quickly respond when such events occur.
Like any particular industry, competition is quite high. With a shrinking and aging talent pool, there is a need to acquire the best talent in the industry. Thus, for employees, the oil and gas industry is a great one to be in. Oil companies face the challenge of training and recruiting their next generation and staffing demands. Despite the untapped and found resources, many challenges in this industry make investors wonder whether this industry is coming to an end. For instance, the growing sustainable energy industry and price volatility, and huge costs of raw materials and wages are affecting this industry negatively.
Although there is a huge growth of green technologies, oil and gas still have a role to play. Thus, if you are an investor thinking about the future, you should consider this industry.