Monday, April 24, 2006

Energy, Utilities and Mining

In an ever-changing landscape, PwC has been providing professional services to energy, utilities, and mining companies for more than 100 years. We help companies confront the industry's most challenging issues, including:
Growth
Geopolitical risk
Transaction risk
Regulatory change
Operational excellence
Reporting and compliance risk
Social responsibility
Financial risk
Workplace size and diversity

Oil and Gas

Globally, the oil and gas industry is experiencing continued price volatility, significant technology advancements, regulatory changes, and the opening of new exploration areas and new markets. Companies have expanded internationally via production sharing contracts, mergers, acquisitions, and strategic alliances. The industry faces higher spending requirements for compliance with environmental and safety standards

Utilities

The utility sector is complex and changing rapidly as companies pursue new models of value creation. Some strategies fiercely reinforce the traditional integrated utility strength of owning production, distribution and the customers. Others seek competitive advantage (or have it thrust upon them by regulators) by concentrating on particular parts of the energy chain. Previously sacrosanct national boundaries are falling as cross border investment progresses. Energy trading is becoming a risky essential. But the trend to liberalisation, convergence and competition for end customers is by no means uniform across territories. National differences abound.

Mining

Volatile and often falling commodity prices, depleted mineral reserves, stringent environmental regulations and restriction, rising operating costs, and ever intensifying competition have seen the mining industry reassess its strategies and become ever more global in its focus. Mining companies around the world have responded to these challenges by consolidating and restructuring their companies, seeking new capital resources, and adopting innovative technologies. Investment incentive opportunities, deregulation, low-cost labor and the opportunities for large, high quality ore reserves have enticed companies to overcome previous entry barriers and explore emerging markets in developing mining markets. This ever-increasing move towards globalisation is driving a record number of mergers, acquisitions strategic alliances and joint ventures around the world.

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