Discuss how Strategic Challenges in the Industry Report effects the firms continued success

Strategic Challenges in Oil and Gas Industry
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Strategic Challenges in Oil and Gas Industry
Each organization has various strategic challenges that affects its operations. Companies in the oil and gas industry are some of the most sensitive to strategic challenges and risks since their operations rely on numerous factors for the companies to maintain profitability. It is therefore imperative to research and understand the challenges that are face by the oil and gas sector. There are general risks that affect all industries including management issues, but some companies undergo concentrated challenges, especially in the oil and gas industry.
As the corona virus continues to affect the world economies, the oil and gas sector is one of the hardest hit by the economic uncertainty caused by the disease. Since most countries have effected mandatory lockdowns, vehicles have been grounded and oil and gas prices plummeted tremendously. Since no one knows when the pandemic will end, oil and gas companies are expected to continue suffering in terms of prices. When prices drop, the companies are unable to cover their operational cost and therefore become unprofitable until a time when things change. However, it does not mean that lack of profitability due to price drop must cause companies to shut down. Oil and gas companies are difficult to close and even more expensive to restart, they are therefore left with the only option of forecasting the future prices and hoping that problems such as the coronavirus pandemic cease fast.
Political risk is another major challenge that affects oil a...