The oil and gas industry has suffered in recent years. Prices have tumbled since the “2014 Oil Glut”, when the global oil supply outstripped demand, leading to an overall market slowdown. The industry saw a second large hit to oil prices in 2020, as the coronavirus pandemic affected production and supply chains around the world. In April 2020 US oil prices fell below zero, the deepest fall in demand in 25 years.
In 2021, prices bounced back. In response to the drastic price drop of April 2020, OPEC+ (a group of 24 oil-producing nations) agreed to slow crude oil production in order to stimulate demand. Crude oil's price increased by 57.8% over 2021, reaching $76.54 per barrel in December 2021.
Despite a financially difficult few years, security threats to oil and gas companies haven’t changed. Before we look at the security threats, let's look in more detail at how the oil and gas industry is structured.