Extractive Industries - Challenges and Opportunities

 

Extractive industries refer to businesses that extract oil, gas, timber, coal, paper, and other raw materials from the earth to be used by consumers. They use drilling and pumping, mining, quarrying, and other such industrial processes to extract minerals. 

 

Challenges 

 

Extractive industries are divided into two areas: (1) oil and gas, and (2) mining. 

 

Both sectors have a reputation for having a wide scale negative impacts on the environment. Because of their nature, these industries disturb the land and use a lot of energy to extract the resource they are developing. They are often seen as the main drivers of climate change. 

 

On top of this, both mining and oil and gas also face disruptive technological, political, and legislative changes. While the growth of these industries has generated significant income as well as future opportunities for countries that are resource-abundant, it also brought complicated environmental, social, and geopolitical challenges for businesses to navigate.

 

The road ahead 

 

What is the future of high-value resources including metals, oil, and gas? How will extractive industries adapt to the changing norms and regulations that have governed policymaking for many decades? To what extent can extractive industries address sustainability and climate change while improving their accountability and transparency? Is it time to rethink traditional business models because of decarbonization?

 

There is no doubt that extractive industries are in flux. Businesses in this sector need to have a solid strategy, ensuring that they are better equipped to take action when opportunities arise. They also need to be flexible to quickly implement new strategies and rethink their options as needed. 

 

An advisory firm can help businesses in this sector optimise their operations in the areas of risk, operational, and financial management. They can also help companies optimise their corporate structures in light of international tax systems. 



 

Comments

Post a Comment

Popular posts from this blog

Can a Company Start Doing Business in Dubai – Where, How, Why?

  If you’re looking for a place to start a business, you may want to consider the United Arab Emirates. It’s among the highly attractive business hubs in the Middle East, with Dubai as its most favourable destination for international companies. With incorporation services from Singapore, you should find it easier to establish your business.   Why Dubai?   Dubai is one of the cities that will allow you to enter the Middle Eastern market. There, you’ll have ready access to modern communications, excellent infrastructure, an advanced transport network, and skilled labour. Its investment climate is generally stable, which makes it safe for new and established businesses to thrive.   How to start a business in Dubai?   There are many opportunities for business investment in Dubai. You just have to do some  strategic management and planning  to discover how to navigate the options and pick the best one. You could consider a Ma...
Read more

Threats and Effects of the Russia-Ukraine War on the Global Economy

Russia launched a full-scale invasion of Ukraine in late February 2022. And unfortunately, it’s not just these two countries that have been affected—even the rest of the world has suffered a major blow. Businesses are scrambling to devise the best strategy and corporate finance management practices to lessen the impact as much as possible. But there are still many threats to the global economy. ·          Inflation It’s no surprise that inflation has become an even bigger problem after the war. Food, energy, and other major commodities are seeing drastic price increases, affecting emerging markets and developing countries the most. According to the International Monetary Fund (IMF), inflation for emerging markets and developing economies are forecasted to rise by 8.7% in 2022. Meanwhile, advanced economies still suffer from a significantly high inflation rate of 5.7%. ·          The war and COVID-19 ...
Read more