The oil and gas industry easily has a large impact on the mass populations of the world, as they supply many useful products, the main one being gasoline. Though this industry is a large and prosperous one, it also has a lot of risk involved with it. Following are five of the biggest risks in the oil and gas industry.
Laws & Regulations
The oil & gas industry has a lot of government regulations to face such as these. Missing the mark on these enforced regulations can have huge consequences. Companies within this industry must take extra precaution to ensure they are complying with all mandatory regulations when proceeding on a project. The risks of noncompliance can range from cost overruns, fines, prosecution, work stoppage and physical security threats. This industry must also be cautious about where they are drilling and be well informed and aware of the laws that can have impact.
From laws to environmental challenges, geological risks vary far and wide. As we all know, each state and country has its own unique laws. It is important to look at the environment at which you are planning a project in, before you start. The last thing you want is to waste all your time and resources only to find out that it is either illegal to drill where you are drilling or there is no oil available at that location.
The oil and gas industry has faced many terrorist attacks over the years, some even deadly. It is important for oil and gas firms to assess the risk to their assets and employees based on their security posture and threat environment.
Whether a project will bring profit or not is a top concern when an oil and gas company is deciding whether a drilling project will be worth the operational costs and spending allocated for the project.
Supply & Demand
As with any product, there is always the concern that the supply won’t meet the demand, or that the demand won’t meet the supply, which results in wasted resources.
There is a plethora of risks involved in this industry and trying to manage them manually will only lead to disorganization, miscommunication and overall confusion. The most efficient way to manage risk in the oil and gas industry would be to adopt an all-in-one platform that can provide you with the proper content you need, flexibility to be customized and adapted to your unique needs, automation features, report building, task delegating, risk assessing and much more.
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