Google, Facebook 'Wouldn't Have a Clue' How to Run Oil, Gas Industry
Companies like Google and Facebook wouldn’t have a clue about how to run the oil and gas business.
That is the view of Rapidan Energy Group CEO Bob McNally, who made the statement in response to a question posed by Robert Gordon University’s Oil and Gas Institute director, Paul de Leeuw, in a panel discussion at BHGE’s annual meeting in Florence, Italy.
When asked what the sector would look like if it was run by firms like the technology giants, McNally suggested the oil and gas industry needed a particular skillset that was alien to companies like Google and Facebook.
“This is about upfront, heavy, capital expenditures to draw out toxic liquids and gas, clean it up, move it to refining centers, turn it into products that consumers need and compete in the global market. It is physical, it is dirty, I don’t think these companies know how to do that,” McNally said in the panel discussion, which was attended by Rigzone.
“I think the oil and gas industry is unto itself, it takes decades of experience to know how to do this and do it right. I think you do have to have historical perspective, you have to have lived through these boom and bust cycles,” he added.
McNally also highlighted the differences in pace between the oil and gas world and the business environments Google and Facebook are used to dealing with.
“Change doesn’t happen that fast in the oil and gas industry. It takes several decades for new entrants to take over incumbent energy systems so I think…[these companies] wouldn’t be of too much help,” McNally stated.
Rapidan Energy Group provides ‘differentiated and actionable insights on energy markets, policy and geopolitics,’ according to its website. The company has bases in New York, Washington DC and London.
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