Top 5 Challenges Facing Oil Companies Long Island NY

by | Jun 7, 2017 | Oil and Gas

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An investor approaching a new industry should be aware of the risk factors faced by enterprises in that sector. The Oil industry is global in nature and continually faces massive disruption and continues to hugely depend on new evolving trends. This oil sector has suffered a renaissance which has seen the influx of innovative trends in the upstream sector.

There are a number challenges that hold back the Oil Companies Long Island NY, and one is the problem of unsustainable supply of the ever-growing energy demand. In the next twenty years, the growth of energy consumption is likely to rise, and a predominance of fossil fuels in the world energy matrix is. The challenge going forward will be how to meet the increasing demand for energy.

Secondly, oil companies face the challenge of attracting skilled human resource both in the technical and managerial areas to successfully implement massive oil projects. Most individuals who are skilled are reluctant of seeking employment in oil companies because of the past poor records of fire accidents. The companies will need to improve their tarnished image to attract talented professionals.

Additionally, the oil companies face the challenge of access to oil reserves and frontiers which imply exploration of new fields for oil supply. Most oil reserves are too, difficult, expensive or politically unstable to justify operations. Other locations with recently discovered oil reservoirs include the Artic, far North Sea, and the deep waters in Brazil. The competition by different oil companies for the reservoirs is also a challenge to access the reserves. Click here for more details.

The use of unconventional resources has been another challenge for Oil Companies in Long Island NY because it has been unpopular to the environmental hazards it poses. These alternative resources include shale gas, tar sands, and coal bed methane. They have raised debates among professionals because of the harm they make on nature conservation and water resources.

Lastly, Political risks that oil company’s face in when they look for oil in conventional reserves but with challenging political regimes. Most countries with the most conventional oil resources have the most unstable political situations and unfamiliar environments. For more information visit OK Petroleum in Long Island NY.

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