A report by Ernst & Young on Strategic Business Risk for Oil & Gas in 2008 listed the top 10 risks for the oil & gas industry:
1. Human capital deficit
2. Worsening fiscal terms
3. Cost controls
4. Competition for reserves from National Oil Companies (NOCs)
5. Political constraints on access to reserves
6. Uncertain energy policy
7. Demand shocks
8. Climate concerns
9. Supply shocks
10. Energy conservation
The report categorizes these threats as macro threats, sector threats and operational threats.
The high points of the report have an underlined message in the form of a trade off between continuous supply and climate & environmental change considerations, BRIC energy consumption vs Organization for Economic co-operation and Development (OECD) countries, trade off between upstream investment and alternative energy sources and others climatic concerns(Kyoto Protocol, WWF Report, Atmospheric carbon levels, Ozone depletion)
The report is an interesting read...
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