Most industrial sectors require a stable world economy to thrive. Certainty provides a foundation from which long-term vision and strategy can be actioned, with limited impact from external threat. As oil and energy is a commodity, the oil and gas sector is particularly vulnerable to fluctuations in the world economy. Introduction of uncertainty can threaten the survival of company projects, and in some cases threaten entire organisations.
A symbiotic relationship
The stability of the political and economic world is influenced by oil and gas; its impact on conflict across the globe is well-documented. However, oil and gas also rely on a stable economic environment within which to thrive. Instability threatens the sector if governments levy tariffs and increase taxes, for instance; if the cost of currency peaks and troughs dramatically and changes the value of exports; high inflation scuppers consumers’ ability to invest in high-cost products; if stock market trading across the globe changes prices significantly, and so on.
The oil and gas sector will thrive best in a world where economic trends are predictable. If the changes experienced follow well-trodden ground, with long-term policy fitting with a long-held understanding of economic prosperity, then the oil and gas sector can survive.
Power in the hands of the sector
Although oil and gas prices can do a lot to influence world economic stability, it is merely one indicator amongst many. Oil and gas leaders cannot ultimately affect the macro-economic context within which they trade.
Therefore, the best oil and gas leaders in the world need to presume there will be the threat of some instability and act accordingly. By making sound decisions, a successful company will effectively manage the infrastructure to ensure optimal efficiency and return on investment.
Example projects
It is the role of supporting companies to help the oil and gas sector become more efficient and effective. By ensuring all equipment is upgraded, working at peak efficiency, with no or limited downtime, a company can weather much of the global uncertainty. Such projects include, for instance:
Successfully upgrading many installations in the Southern North Sea Sector, both onshore and offshore for a major international oil and gas company.
Supplying National Gas companies direct in at least three western European countries, upgrading all the infrastructure. This amounts to many hundreds of flow computers.
Working on biogas installations in the UK and across Europe. Working to bring the next generation of energy to the market and therefore reducing reliance on fossil fuel deposits in specific regions of the world.
Working on new build UK Natural Gas Power Stations, as well as upgrading existing installations during refurbishment. The latest equipment means the best outcomes which equate to stronger performance.
A solution within our control
Bemoaning the decisions of lawmakers and politicians is easy. It then becomes a struggle against a sense of vulnerability and instability. However, threats are as much a part of an industry ecosystem as opportunities. It is for the leaders to make the best decisions to strengthen the company position, and investing in the most effective and efficient infrastructure is one solution within a leader’s control.
Exi Flow Measurement specialises in products for the gas and liquid measurement industry – manufacturing, researching and developing with a focus on continuous project development and enhancement. To speak to us about how we can help you, call +44 (0)1243 554920 or contact us here.