Amended Energy Outlook

I just realized I left out additional stats and the brief conclusions to the previous article on a survey of oil and gas industry leaders.  The conclusions are that industry spending will increase in 2012, but the following information points to regulatory hurdles that (a) are seen as obstacles by industry and (b) are seen as necessary protection against unaccountability on the part of industry by industry watchdogs.  Also interesting is the problem of skilled labor or lack thereof.  Community colleges may be taking the lead on this issue. I know that Bossier Parish Community College in Bossier City, LA, now offers a two year degree that is tailored to meet the needs of the natural gas industry, particularly in regard to the Haynesville Shale.

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• "Risk remains a key challenge:

An overwhelming majority of respondents
- 82% - either strongly or somewhat agree
that regulatory issues have become more
important in the post-Macondo period.
Increasing regulation is regarded by more
than 30% of respondents as the main
challenge for their company over the next 12
months.

• Skills shortages are becoming more acute:

According to the Economist Intelligence
Unit’s research, skills shortage comes out of
the survey as one of the major obstacles to
growth over the next 12 months. Last year,
skills issues came fifth on the list of barriers
and were only identified as a top three issue
by 25% of respondents. This year, the issue
has risen to second on the list, and has
been identified as a key barrier by 34% of
respondents.

Conclusions:
Companies are preparing to spend big in 2012,
despite a slower growth in demand for oil and
gas during the second half of last year, and
concerns over the future of the global economy.
Findings from the report highlight a wealth
of barriers to success, from rising operating
costs to the worry of an impending shortage of
skilled professionals and an uncertain regulatory
environment in the post-Macondo era.
Capital expenditure looks set to take off,
industry leaders will need to invest selectively
this year, keeping operating risks low during
a period of prolonged uncertainty. Their
success will be defined by an ability to develop
innovative approaches to operating more safely,
efficiently and sustainably than ever.
Findings from the report highlight a wealth
of barriers to success, from rising operating
costs to the worry of an impending shortage of
skilled professionals and an uncertain regulatory
environment in the post-Macondo era.
While capital expenditure looks set to
take off, industry leaders will need to invest
selectively this year, keeping operating risks low
during a period of prolonged uncertainty. "