Evidently, after the global discovery of crude oil, a fine line was drawn between the oil-producing regions (Asia, North America, and Africa ) and the oil-consuming regions. Trade between both arms became a ground of political hunt during the Yom Kippur war in 1973.
During this war, 12 OPEC members agreed to place an oil embargo on the USA because of its allegiance to the Israelis side . the result of this was really devasting to America’s industrialization and thus led to inflation.
Although in November 1973 when the war ended, things came back somewhat close to normal. Howbeit, each side had learned from this experience.
THE OIL GLUT
Additionally, in 1980 oil glut occurred. This disrupted commercial activities in the developed world. Clearly, it became a matter of necessity to divert more attention towards reducing oil consumption and maximizing yield within a period of destabilization.
The essence of digitalization in several operations cannot be overemphasized amongst other technological procedures. Technology, with digitalization at the foremost, is the trail blazer in efficient modern techniques.
Also, blockchain can as well be adopted for oil transactions as this takes care of financial data which is a microscopic but severe issue in the oil sector
SPREADING TENTACLES -ANOTHER WAY TO SURVIVE
Crude oil is not just for producing fuel (kerosene, petrol, and diesel).That is to say, oil companies should venture into manufacturing other petroleum products than fuel. In other words, they should strengthen their petrochemical arm (in charge of plastics fertilizers, etc production ) as a defense for the worst scenario in crude oil/fossil fuel patronage.
The cost of producing alternative sources of energy is still very high despite several researches carried out. The result of this, is increased consumer cost incurred. Therefore, until this problem is curdled, the “worst scenarios ” as it is in the developed world, is a mixed energy framework with fossil fuel having the highest percentage of total usage.
Owing to this, energy from oil might likely increase from 3.8 billion tonnes to over 4 billion tonnes, somewhere within this current decade that starts from 2020
SURVIVING THE NEXT TWO DECADES WHILE REMAINING RELEVANT IN THE GLOBAL/DOMESTIC MARKET
OPTIMIZATION- One way to survive
optimizing several processes to bring about low dependency on the Arab world and her sister continents. This resulted in Researches going into findings for more efficient and low cost procedures in various in various operations ranging from upstream to the downstream sectors
Furthermore, alternative means of energy such as biogas, solar and nuclear power also generated more attention than it had before now.
PRESENT CRUDE OIL MENACE – WOULD IT PRICE BOUNCE BACK OR NOT
The first two paragraphs have proven the fact that the current crude oil price menace which started in 2014 is not new in the history of mankind. Although, as compared to the oil glut of the 1980s, this recent issue has lasted way longer.
This has caused fears amongst stakeholders, investors and prospective investors due to uncertainties as per if the oil has reached it end as coal did in history. Well, personally speaking, crude oil would still dominate the world energy market for the next three decades.
DYNAMISM- THE OVERALL SURVIVAL STRATEGY
In the history of oil and gas, this decade and the next, mark a period where flexibility amongst stakeholders in this contextual sector is the key.
Presently managerial procedures should be directed towards giving room for a quick and prompt response to change. Staff training for enhancing the mobility of workers and the quick adoption of new approaches is also fundamental.
The reason for this being that, in no distant time, the oil market might be targetted to those nations with no natural endowment for renewable energy. This pertains to those countries that might not catch up with the mixed energy system because they are not sunny or windy.
Nations under this category would fully rely on fossil fuel for a long time