Major oil and gas sector transformation and Quist’s advice to clients.

February 2015

Representing international commodity traders operating in the oil and gas sector

The oil and gas industry is undergoing a major revolution while entering a new era of low prices to which it must adapt. Recent political and security crises have caused huge instability in the geo-political regions which harbour the most oil. This coupled with increasing reliance on alternative energy sources and more stringent regulations regarding the environmental impact of fossil energy sources has resulted in a volatile atmosphere. On top of the recent collapse in oil prices, increased oil production has caused price elasticity causing an unpredictable future for the oil industry.

Litigation is an inevitable consequence of such fundamental industry restructuring, with companies becoming increasingly reliant upon legal mechanisms to ensure their solidity.

It is inevitable that the market for crude oil and its products are affecting businesses with the consequential need for them to evaluate their contractual and commercial positions to avoid or reduce potential difficulties.

Quist have seen an increase in advice provided to their clients to assist with, among other things, minimising the risk of adverse impacts.

Good risk management at an early stage has assisted Quist’s clients with avoiding disputes and mitigating or succeeding with litigation.