By Pat Hinds
I read a couple of interesting articles in the Calgary Herald recently; the first was entitled, “Output in Americas Faces Hurdles” and the second in the Financial Post, “China Moves to Stockpile Oil While It’s Cheap”. By working in downtown Calgary, you get to talk about the oil & gas business every day and the sentiment at the street level is negative. People are worried about jobs, how long the global recession will last, and what impact it will have on them and their families. The glory days of years past are but a memory.
After reading these articles, I can’t help but feel the turn around in the oil & gas sector is going to be steep and quick. In the Herald article it states that the Americas account for 25% of the world’s oil production and output is expected to rise by 1% in 2009. The Financial Post article states that China is adding 3 million tones of reserves this year and this will grow to 10 million tonnes by 2011. These are early indicators that oil is poised for a rebound as production growth is flat to falling and the largest economy in the world is preparing to cushion its economy from higher oil prices by stock piling reserves.
Companies have a small window to target the energy sector with sales activity; at this point, we are in the calm before the storm. The energy sector is in the review process on how they can operate more efficiently; many companies have come to the conclusion that the higher cost structure of producing unconventional oil is going to be the norm for the future. If you feel your company is in a position to help address the cost of producing unconventional energy, this is the time to be targeting the oil & gas industry. Although these are challenging and tenuous times, they are also full of several potential opportunities!
Topics: Sales Consulting