Energy & Primary Resources
Many sectors in Energy & Primary Resources are experiencing significant upheaval - market dynamics are shifting and companies are rethinking their strategies.
The global Oil & Gas sector has undergone tremendous consolidation, resulting in a small number of globally integrated majors seeking new oil and gas reserves. Riskier exploration and extraction projects have been made more attractive by high oil prices, but have also been constrained by labour shortages and gaps in supporting infrastructure.
Electricity & Gas Utilities were one of the most heavily regulated sectors in the world, but government supports have given way to a utilities sector struggling to cope with cost pressures, an overburdened infrastructure and insufficient incentives for continued investment.
Mining and forestry firms are experiencing different challenges as they move through the business cycle for primary resources. Even with booming demand, these firms continue to deal with intense global competition, ongoing industry consolidation and persistent price-cost pressure.
Finally, across all primary industries and utilities sectors, consumer and political concerns are forcing executives' attention to environmental and social issues such as greenhouse gas reduction, energy efficiency and renewal, aboriginal rights and community impact.
We have helped our Energy clients cope with the risk and complexity of operating in this sector by enhancing investment decisions, diversifying risks and improving the value chain from extraction through to retail operations. RPO has also worked with Primary Resources companies to develop strategies that successfully define strong performance management / incentive systems, and identify and resolve production planning issues across the supply chain.