Forging alliances to meet future energy demand

The oil and gas industry is contending with a dynamic global marketplace and an increasingly insistent group of stakeholders. Demand growth is slowing and regulatory pressures continue to impact operations, while available reserves are more difficult and expensive to produce. As the pressure to meet future energy demand mounts, global alliances are becoming more and more critical.

Oil and gas companies need to know how to respond to emerging trends, anticipate risk effectively, improve performance and operate more efficiently.

Ernst & Young’s Global Oil & Gas Center has a clear understanding of how to do this within your industry. It serves as the hub for our network of highly-skilled resources — professionals with deep experience delivering assurance, tax, transaction and advisory services within oil and gas companies.

The Center brings people and ideas together to help companies like yours meet the issues of today — and tomorrow. However complex your challenges, we share information with you on emerging trends and regulations to help you move forward in your business.

You benefit from support in managing your business more effectively — and understanding what’s shaping your industry.

International GAAP® illustrative financial statements

We produce a number of illustrative model accounts, designed to offer a guide to presenting financial statements under IFRS(pdf, 452kb) for a fictional company in 'Euroland'. Read the full year-end statements, incorporating all IFRS at 31 August 2007, and also interim statements, and statements covering the banking, petroleum and insurance industries. Our interim statements have been updated to incorporate all IFRS issued at 31 March 2008.

The future of oilfield service companies

Today’s oilfield services (OFS) industry participants are experiencing a dynamic marketplace (pdf, 969kb), requiring a long-term approach to business strategy. In this environment, the opportunities for OFS companies are immense, but change is also unavoidable and will affect all aspects of the business: technology; products and processes; organizational capabilities and operating models. Take a look at the biggest challenges and opportunities facing OFS companies right now.

Canadian oil sands

In a world in search of new oil sources, the oil sands of Alberta, Canada, may represent at least 50% of new investable reserves accessible in the world today. Tremendous opportunities and challenges lie in highly complex and capital-intense projects with substantial environmental and social/political implications. Learn about the human capital challenges associated with the oil sands boom, focusing on recruitment from our report.

Strategic business risk — oil and gas 2008

What strategic challenges are likely to affect oil and gas companies in 2008 (pdf, 493kb)? We analyze 10 of the most critical risks, including human capital deficit, supply and demand shocks, cost controls and worsening fiscal terms. We also look at risks currently ‘below the radar’ that may be topping risk tables in the years to come.

Overcoming recruitment and retention challenges in the oil and gas industry

Oil and gas companies are facing a talent void (pdf, 591kb) and the effects have already begun to ripple throughout the industry. How can oil and gas firms overcome the challenges posed by the workforce shortage? Read our report to learn about six organizational and strategic steps companies can take to become employers of choice, thereby attracting and retaining all the talent they need.

Are national oil companies the new international oil companies?

The “national” label for national oil companies (NOC) is becoming less of a definer and the “international” tag is no longer the preserve of international oil companies (IOCs). As the once-held distinction between NOCs and IOCs are becoming more blurred (pdf, 532kb), the dynamics of the global oil industry is shifting. Learn more about how NOCs are becoming increasingly integrated and international in scope.

Six factors in post-acquisition integration

Consolidation is a constant in the energy industry, but too many deals fail to deliver on promises made to investors, analysts, employees, and customers. "After the acquisition", from Ernst & Young US, examines why integration is essential to realizing transaction value and why companies managing post-merger integration should focus on six major areas to enhance their chances of success.

New partnership models, new agendas

As the balance of supply and demand shifts, the benefits of partnership between NOCs, IOCs, and service companies become more compelling. A report from Ernst & Young in the UK covers the history of cooperation among these players and what’s influencing partnerships today. See also key success factors to consider throughout the partnership lifecycle.

Country attractiveness indices 2008 - Q1 & Q2 2008

China displaces the UK in the top five countries in the Ernst & Young renewable energy country attractiveness indices for Q1 and Q2 2008 (pdf, 1.3mb). This is in spite of the UKs renewable energy strategy proposals which are yet to be translated into tangible benefit to the industry. The lead article discusses the impacts of the credit crunch and rising oil prices and their impact on investment in renewable energy.

What is next for international oil companies?

Increasing resource nationalism among national oil companies (NOCs) is reducing the opportunities available to the international oil companies (IOCs). IOCs are facing a major challenge (pdf, 520kb): convincing NOCS and host governments that they provide value beyond finding and producing oil and gas. The question now remains; what is next for international oil companies? Find out more.

US GAAP v. IFRS: the basics for oil and gas companies

Given the global breath of the industry and the recent SEC actions, many industry executives are expanding their knowledge of the industry-specific differences between US GAAP and IFRS. This publication supplements our US GAAP v. IFRS: The Basics (pdf, 259kb), reviews where these two standards are similar and also where they differ for some of the more critical oil and gas industry accounting policies and practices.

Read more about IFRS.

Scenario planning

The future of a business is particularly uncertain in an industry driven by the development and delivery of natural resources. Scenario planning that considers multiple outcomes can shape sound business decisions. To help you jumpstart your own planning exercises, we bring you through nine “what if” scenarios and possible outcomes.