Oil firms threatened by global economic crisis, environmental pressure
ABU DHABI — The global energy sector could be harmed by the economic
crisis, a report said.
A leading financial consultant, Ernst & Young, asserted that access to
energy reserves has been identified as the leading business risk for the oil
and natural gas sector.
In a report, the consultant, based on interviews
with leading industry executives, said many companies were hampered by
uncertainty over energy policy, including environmental concerns, Middle East Newsline reported.
"Events of the last six months have shown how quickly and dramatically
market conditions can change," Ernst & Young global oil and gas leader Wendy
Fenwick said.
"These events have resulted in the need to fundamentally
change how businesses act in a new environment. Oil and gas companies need
to ensure that their risk management policies and procedures allow them to
react and respond quickly to unexpected events."
The third biggest business risk for the oil sector was identified as
price volatility. The report said this could threaten development and other
plans by energy contractors.
