Riding out the storm
Although another super-cycle can never be discounted in the oil industry, market analysts currently consider it unlikely that the oil and gas industry will ever experience the conditions that immediately preceded the 2008 financial crisis.
In that period, businesses were able to generate significant profits thanks to skyrocketing oil prices and significant global demand. As the green economy gains further traction, buoyed by political and societal support, inevitably oil and gas players will face challenges. It will not always be easy to preserve cordial relationships with joint venture partners, contractors, supply chains and host states.
Where tensions build, it will be essential to have the right methods in place to mollify friction and unease.
"Organisations that are process-led tend to be extremely effective at managing disputes."
Phillip Ashley, Partner
With in-house legal departments becoming more integrated into the wider business, and with more targeted use of technologies and external counsel to predict and prevent disputes, businesses can be better prepared for the post-COVID climate.
Oil and Gas Disputes Survey: Managing disputes risk – the in-house perspective
- Key Findings of the CMS oil & gas disputes survey
- Geography: Complex environments deliver financial rewards but higher risks
- Where do the disputes come from?
- Interview with Johanna Coelho, Legal Manager, PetroRio
- Operational problems: activities and relationships that can lead to disputes
- Elevated risks: newer dangers for oil and gas players
- Interview with Duncan Holland, Head of Legal, Cairn Energy
- Risk mitigation: limiting the fallout
- Interview with Sandra Redding, General Counsel, Seadrill
- Riding out the storm
