The global recession has created new challenges and opportunities for both upstream and downstream players. Booz & Company provides concrete ways to ride out the storm and emerge stronger:
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Upstream Upstream oil and gas players are addressing several near-term threats to financial returns, while holding open prospects for growth. Yet our long-term outlook, based on demand and supply fundamentals, remains optimistic. To resolve this conflict between near-term pressures and long-term potential, oil and gas company leaders should be executing a strategic response to the economic crisis that offsets near-term risks and maintains or even increases long-term capabilities. Booz & Company suggests taking initiative on six fronts. |
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Downstream The refining industry is at a crossroads. Demand for transportation fuels is halting in developing economies and industry growth is shifting to the East. At the same time, emphasis on alternative fuels is creating excess supply, particularly of gasoline-like substitutes. Global supply and demand balances are shifting, and the global economic recession has accelerated this trend. In addition, emphasis on greenhouse gas (GHG) reduction will not only drive further demand destruction but may translate into significant taxes at the refinery level in some geographies. |
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