Energy & Resources

Over the last decade energy and resources’ companies have faced some challenges in current economical and political environment inside each industry:

Electricity

• Increase in costs of primary fuels
• Environmental pollution restrictions
• Increasing demand on energy
• Monopolization
• Deregulation of energy markets in developed countries and rather strong governmental influence over emerging markets

Oil & Gas

• High volatility in prices, unpredictable fluctuations
• Depletion of existing deposit reserves and necessity of their replacement. As the result – high expenditures on exploration of new oil and gas fields and tough competition in the industry.
• Mergers and acquisitions of smaller national companies by large international holdings

Mining

• Bottoming of the current deposits and development of new fields with lower capacity
• Enhancing of final output from raw stock
• Ineffective operations and outdated technologies that result in high mining costs
• Low profitability and importance of vertical integration
• Need in tremendous investments in assets and equipment
• Importance of providing appropriate safety measures and conditions for workforce
• Tough government regulation of industry

Existence of these factors mean significant threats and simultaneously great opportunities for companies to implement appropriate changes and reach desired performance level and market position.

Desire to reach sustainable growth and leadership in industry requires companies to focus on implementation of new technologies, innovative approach, optimization of internal processes (extraction, distribution, transportation etc.), proper risk management.