'Disruptive forces' will challenge oil and gas industry

The oil and gas industry
can expect an increase
in disruptive forces in
the sector as the world
grapples with a changing
labour force and demand for
cleaner energy
sources grows,
according
to Chris
Bredenhann,
PwC Africa Oil
& Gas advisory
leader.
Delivering
the keynote
address at
the Oil & Gas
Logistics 2016
conference in
Cape Town
recently,
Bredenhann
said demographic and social
changes in the next ten years
would see at least 40% of the
global work force made up of
millennials, resulting in major
change to the way things were
done.
According to industry
estimates about 50% of the
oil and gas workforce will
be retiring in the coming
five years.
Bredenhann said this
would see
some serious
disruption in
how things
were done as
the old stepped
out and the
new stepped in.
“At the same
time climate
change is also
making an
impact and
consumers the
world over are
becoming more
concerned
with carbon footprint and
are putting pressure on
companies.”
With the demand for energy
set to increase by 50% by
2030 as the world population
increases, the challenge will
be delivering while keeping
sustainability a top priority.
“Global demand for
affordable, reliable energy
will continue to grow for the
foreseeable future, but there is
a new longer-term backdrop
as the world transitions to a
low carbon system. Companies
in the oil and gas sector need
to reconsider their
portfolios and related
capabilities to not
only survive, but
thrive, in this new
future,” he said.
Demand for
oil might very
well be on the
horizon as
demand for
fossil fuels
increased, he
added.
Bredenhann
said whilst
fossil fuels
would always
be in demand they would
without doubt in future
represent a lesser proportion
of the energy mix.
“In other words
competition in the energy
sector is on the increase
and that will impact on oil
and gas which has been the
leader of the pack.”
He said there was no
denying that the low carbon
agenda would not only shape
the future energy debate but
play a significant role in the
long term.
“The impact will not be
immediate but from a
long-term point of view
oil and gas companies are
going to have to deal with
this very disruptive force in
their business.”
INSERT & CAPTION
The low carbon
agenda will not only
shape the future
energy debate but
play a significant role
in the long term.
– Chris Bredenhann