How Supply Chain Dynamics Will Impact Decision Making for Oil and Gas Companies
In 2024, the oil and gas industry is in for a rollercoaster ride of challenges and changes, especially with how things play out this year. Picture this: there’s tension brewing all over the world, and we’re also in the midst of a big movement towards cleaner energy. For oil and gas companies, this means they’re staring down some important choices that could make or break their future. Let’s dig into how all these supply chain dynamics are going to shape what they do throughout the year and into 2025.
First off, let’s talk about the big picture of world politics. The Russia-Ukraine conflict is ongoing, and tensions are high in the Middle East too. These geopolitical hotspots have already influenced the way energy gets from one place to another. So, as the industry tries to find its way through all this uncertainty, figuring out how to deal with these political risks is going to be job number one for those calling the shots.
Moving on to energy security, many countries are trying to find a balance between using fossil fuels and renewable energy. This is walking a tight rope between the past and the future and even though everyone seems to be passionate about going green, the shift isn’t happening all that fast. Why? Well, people are worried about energy security and prices going through the roof. This delicate dance shows just how important it is to manage supply chains with smarts to keep things steady as the market does its crazy dance.
Now, moving onto ESG – Environmental, Social, and Governance. It’s become a big deal for oil and gas companies who want to be responsible. Consumers want and demand these companies to be upfront and honest so when it comes to making decisions about the supply chain, it’s all about ticking those ESG boxes. That means putting the environment first, making sure everyone feels included, and playing by the rules when it comes to how things are run from top to bottom in the supply chain world.
Let’s talk about cutting down on carbon emissions which is called decarbonisation. Decarbonisation is pushing the industry to get creative with solutions like renewables, low-carbon hydrogen, carbon capture and storage (CCS), and electric vehicles (EVs). But as business works, making money still matters when it comes to funding these decarbonisation projects. Interestingly, the Ukraine conflict has shed light on how natural gas and other eco-friendly alternatives can actually help us reach those global decarbonisation targets. It has shown how the old and new energy sources can dance together.
In this digital age, technology is like the secret weapon that fuels efficiency, reliability, and security in oil and gas operations. Think AI and blockchain. They’re not just for show; they’re shaking up how supply chains work, giving companies the power to roll with the punches in a world that’s always changing. So embracing these tech tools is like strapping on a jetpack for oil and gas companies, helping them soar through the ever-shifting landscape of the industry.
Amongst these intricate hurdles, supply chain experts hold a crucial spot in coordinating smooth operations and steering strategic choices. The IMM Graduate School provides extensive Supply Chain Management qualifications tailored to equip both current and aspiring professionals with the knowledge and skills essential for navigating these ever-changing settings effectively. By tapping into learning resources like these, supply chain professionals and aspiring supply chain professionals can boost their know-how and contribute to the endurance and sustainability of the oil and gas sector.
To sum up, 2024 stands as a crossroads of unpredictability and metamorphosis for oil and gas companies, where supply chain dynamics will wield considerable influence over their tactics and results. By embracing insights on geopolitics, ESG mandates, decarbonisation ventures, and state-of-the-art technologies, these organisations can manoeuvre through the intricacies of the industry terrain and plot a course towards sustainable expansion and resilience.