CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

PwC Oil and gas firms need new strategy

Article By: ,  Financial Analyst
February 12, 2015 1:26 PM

PwC has called on oil and gas companies to adapt their strategies or run the risk of failing to grasp opportunities within the sector.

In a new report, the firm explained that the North Sea is facing a "complex and difficult" future as oil prices continue to tumble. It warned that it could result in a reduction in investment and ultimately a faster decommissioning of oil fields. PwC believes that oil companies need to review their strategies now to ensure they do not get left behind.

Among the suggestions put forward in the report include re-evaluating the shape of the business and developing a revised business model and strategy. PwC believes that oil firms need to embrace new technology and innovation to meet the changing demand of the sector. Divestation was also a major part with PwC recommending this is done with non-core parts of the business.

The company described the UK oil and gas industry as facing an "economic triple whammy" and so it is vitally important that companies heed the lessons learnt in the past and prepare accordingly.

Brian Campbell, oil and gas capital projects director at PwC, said: "It’s not too late to glean some good out of adversity and for businesses to work together to create their own new dawn for the North Sea.

"There are a series of levers business leaders can pull, which, as we’ve seen in the past, can lead to long term sustained efficiencies and opportunities for their business and the wider industry."

Tumbling oil prices

Global oil prices are continuing to fall and rating agency Moody's recently painted a rather bleak picture for the coming years. The organisation said that the tumbling prices will fail to provide a "significant boost" to growth across the world in the next two years. It highlighted ongoing economic problems in the eurozone as hampering any progression.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024