Global Valve and Controls

Major risks involved in Oil and Gas Companies

Can you name all the risks that are associated with Oil and Gas companies? To name a few;

Political: Typically, an oil and gas company is covered by a range of regulations that limit where, when and how extraction is done.

Geological: Exploration has moved on to areas that involve drilling in less friendly environments - like on a platform in the middle of an undulating ocean.

Price: Price of oil and gas is the primary factor in deciding whether a reserve is economically feasible.

Supply and Demand: Operations take a lot of capital and time to get going, and they are not easy to mothball when prices go south, or ramp up when they go north.

The most critical risk that many do not consider is cyber security. "The oil and gas industry is increasingly thinking about cyber security as a safety issue for industrial plants."

Just a few years ago, cyber security was viewed as an expense and an intangible problem; that thinking is changing. Growing interest by the hacker community in industrial control systems has made them a target for cyber threats.

"What you're seeing in the public corporate sector is a rising number of and severity of attacks; we're seeing the same type of things in the industrial environment," said Jeff Zindel, global business leader Cyber Security at Honeywell Process Solutions (HPS)"

Greater automation and use of digital technologies in industrial sites such as production sites and refineries means that oil and gas companies face greater risk of cyber attacks