Oil/Gas:
Global oil demand fell by 24% in April, but it has rebounded sharply since then, cutting its losses to just 7.5%, and work at home trends will continue to apply downward pressure.
Like any industry, mass layoffs and heightened cyclicality in employment continue to challenge the industry’s reputation as a reliable employer. US O&G companies laid off about 16% of permanent employees in 2020, and research reported publicly indicate that about 3/4 of jobs lost during the pandemic may not come back by the end of 2021. In 2021, oil and gas prices experienced a robust recovery driven by the global economic rebound following pandemic-depressed 2020. Tight oil and gas markets drove prices dramatically higher – increases of 59% and 33%, respectively. A recent survey of 132 oil and gas executives by the Dallas Federal Reserve Bank shows they expect oil prices to remain stable or rise further in 2022. It remains to be seen how these trends will affect employment in the industry.
Critical events like the pandemic started an acceleration of strain around the oil and gas industry.
With these industry strains, pivoting to the new energy future requires companies to make bold choices, as energy companies look at bundling strategies to meet the energy needs of travelers— Re-Charging and gas stations is one strategy executives are considering.
While there is a commitment of the new administration on clean energy, auto manufactures are fully focused on E-Vehicles.
The following trends could help O&G companies in deciding their strategy and direction going forward.
- Changes in end-use demand patterns and supply composition.
- Consolidation in a low-priced environment.
- Crisper focus around the best value proposition segment of the energy supply chain.
While cybersecurity of operating systems compels the industry to take the actions to harden their systems against future attacks and access their distribution approaches.
The choices O&G companies make in the coming months, and the trends they prioritize, will decide the path forward and reverberate through their decision-making in the coming decade.
Capturing these opportunities will compel rapid transformation and focus and the Quantensprung Group can partner with your team to enable rapid strategy development and execution.
Our team offers the Oil/Gas Industries the full pallet of the Quantensprung Group service offerings.
Chemicals and Materials:
To succeed in the shifting industry landscape of the chemical and materials markets, companies will be considering implementing a portfolio of precise, strategic initiatives across major functional areas such as R&D and technology.
A balance between a focus on the short term, as opposed to long-term opportunities, is critical to sustaining the business viability, including investing in innovation, emerging applications, and adopting new business models that generate sustained growth.
Capturing these opportunities will compel rapid transformation and focus.
Our team offers the Chemicals and Materials Industries the full pallet of the Quantensprung Group service offerings.
Quantensprung Group can partner with your team to enable rapid strategy development and execution.
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