Oil and Gas

Oil and Gas industry in US
The spread of COVID-19 has disrupted global financial and commodity markets, as well as the US oil
and gas industry, now showing decline in energy demand without parallel. In an industry used to the
highs and lows of economic and commodity price cycles, 2020 poses great challenges to oil and gas
companies. While the facts on the ground are changing rapidly
The most prominent issues faced by US are as follows
Weakening economic growth, in United States
Ongoing, perhaps intensifying, trade tensions, which can create uncertainty, dampen growth, and lead
to modifications in long-established supply chains;.
Monthly oil production in United States
Active Rig Count decline
The North American market saw a steady decrease in rig activity throughout 2019 due in part to the
decline and volatility in the price of crude oil along with funding problems for smaller operators.
Baker Hughes reported that the North American rotary rig count as of April 24, 2020 had declined to
just 491. This count takes into account rigs in the United States, Canada, and the Gulf of Mexico.
Taken together, North American rigs drilling for oil are down 53.4 percent from the same period one
year ago. As of April 24, 2020, there were 438 fewer North American rigs drilling for oil than for the
same period in 2019. Despite changes in the oil and gas industry, particularly since the shale oil and
natural gas industries have ramped up production in recent years, active rig counts can still signal the
willingness of oil and gas companies to continue investing. Per oilfield truck and tractor manufacturer
Tiger General, rig counts can also anticipate a demand for products used in the oil service industry,
such as drilling, producing, and processing hydrocarbons.
Challenges Faced
Worsening Fiscal Terms -The instability of fiscal administration in host-nations puts significant
pressure on the oil and gas organizations in US. This creates insecurity for the entire firm investment
policy and financial strategy
Rising Emerging Consumer Demand-The performance in rising markets is mostly dependent on

various government pricing policies. This means that a major risk is implicated, especially for foreign
direct investments. This also creates the problem with the bargaining power of the country.
Meeting Environmental Regulations-Since the oil and gas industry is the main consumer of energy
and water resources, they are subject to severe environmental standards. This makes them reformulate
their production, extraction, and distribution methods to maintain or get a license to operate.
Minimizing the cost to remain competitive-One of the main challenges that the oil and gas industry is
facing is producing refined industrial products and crude oil at a lower cost. Consequently, enhancing
environmental utilities and system of production on currently functioning sites is the need of the hour
for the oil and gas companies. This will help in increasing productivity in production and minimize
extraction and refining costs.
Technology used by USA
Reengineering technology
Building new IT delivery models from the top down and bottom up -In a marketplace where speed
and flexibility are more important than ever, oil and gas companies are using cloud computing,
automation, and other technologies to transform their back-office systems, operations, and product
and platform offerings. For example, by instituting process and workflow automation, one oil and gas
company was able to spin up a new, cloud-based SAP test environment in just 14 minutes—a
dramatic reduction from a previous, two-week timeframe–to experiment with a new functionality
No collar workforce
By redesigning legacy practices, systems, and talent models around autonomics (virtual workers,
cognitive agents, bots, and other AI-driven capabilities), oil and gas companies can begin the
transformation into nimble, fast-moving organizations. In one example, a global oilfield service
company with manufacturing facilities piloted the use of robots to pick, pack, and ship product from
the shop floor. To help alleviate employees’ concerns about being replaced by robots, the HR
organization began developing and deploying new strategies and tools for recruiting, retaining, and
training a hybrid human-machine workforce.
Enterprise data sovereignty
oil and gas companies can generate enterprise return on investment (ROI) in the form of an evolving,
learning, and growing data management capability. To illustrate,a company that owns, operates, and
develops a portfolio of pipelines, storage, and related midstream assets was looking for a solution to
address increased compliance regulations, safety concerns, maintenance,and integrity management of
its pipeline networks. The company implemented a solution integrating data from multiple internal
sources (GIS, work management system, control center) and external sources (e.g.,government
agencies). It also incorporated data sources such as pipeline attributes, risk scores, inline inspection
findings, planned assessments, high-concentration-area locations, leak history, one-call
tickets,emergency valve locations, precipitation, and fault lines. The approach provides an enterprise-
wide, near-real time view of more than 15,000 miles of interstate pipelines, including monitoring
pipeline threats, improving risk management, and providing situational awareness.
Blockchain to blockchain
Key blockchain opportunity areas in oil and gas are land administration, supply chain, finance,
inventory operations, and marketing. For example, oil and gas companies have started piloting
blockchain-powered“ smart contracts”—self-verifying and self-executing agreements that function
autonomously when engaging with vendors and engineering, procurement, and construction (EPC)
companies. At one company, sophisticated smart contracts have the ability to realize cash flow once
shipment can be confirmed and make payment on feedstock if costs or volumes reach a certain level.
The contract automatically executes its terms when conditions are met, reducing human involvement
in completing a deal.

Oil and Gas

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Oil and Gas

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Oil and Gas industry in US

The most prominent issues faced by US are as follows

Weakening economic growth, in United States

Monthly oil production in United States

Active Rig Count decline

Rising Emerging Consumer Demand-The performance in rising markets is mostly dependent on

Technology used by USA

Enterprise data sovereignty

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