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Top 10 Risks for the Oil and Gas Industry
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Short Description: risks facing oil and gas companies. This study was not a random ... oil and gas services sector to expand sufficiently to meet future demand growth ...
Content Inside: GUEST EDITORIAL Top 10 Risks for the Oil and Gas Industry Rob Jessen, Global Oil & Gas Sector Leader, Ernst & Young Risks are inherent in every forward-looking business decision. As a result, there Rob Jessen is Global Oil & Gas Sector has been a great deal of work done and resources invested in risk management in Leader for Ernst & Young, responsible the oil and gas industry in recent years. Financial and regulatory risks have been for creating sector-specific thought lead- the focus of much of this effort. But more recently, companies have started includ- ing operational risks, prioritizing them and thinking about how they can manage ership, knowledge, and learning and and monitor all risks in a coordinated way. delivering it globally across the firm's In collaboration with Oxford Analytica, Ernst & Young examined the strategic priority accounts. He has 26 years of risks facing oil and gas companies. This study was not a random selection exercise experience of providing professional ser- but rather a structured consultation with industry leaders and subject matter pro- vices to the energy industry. Previously, fessionals from around the world (Fig. 1). What follows are the top 10 identified Jessen served as Global Managing strategic risks for oil and gas companies. Director of Oil and Gas Services for 1. Human Capital Deficit Capgemini. He began his career at The growing human capital deficit in the sector has become a significant strategic Ernst & Whinney, the predecessor firm threat to the industry. One study participant set out the issue: "The ability of the to Ernst & Young, and rejoined Ernst & oil and gas services sector to expand sufficiently to meet future demand growth Young in 2005. He earned a BS degree is questionable, not least in terms of staff. Project delays and abandonment are as much a result of capacity constraints as financial calculations, although the two in business administration from the are intimately linked." University of California at Berkeley with a concentration in finance and economic analysis and policy. Fig. 1--Threats identified in the survey. 18 JPT · JULY 2008
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