This report summarises the key issues facing finance professionals in the gas sector. It considers what their priorities might be in their role of helping drive stability and growth in the sector.
This paper on the gas sector builds on from previous oil & gas reports which focused mainly on the oil sector. It provides a guide to the factors influencing gas prices, and the challenges that finance professionals face while operating in the current market. In doing so it draws on the views on industry experts as well as ACCA members around the world.
In a rapidly evolving marketplace four key areas are highlighted for accountants in the gas sector to consider: pricing, M&A, costs and sustainability.
For buyers, gas has probably never been more attractive with falling prices and the prospect of increased supply from the US. For sellers, gas is a long-term option as it is more complex than oil, given that wells cannot be as easily turned on or off according to the current price. Also, infrastructure has to be built to store and transport gas, whereas oil can go straight into barrels.
Investors may be more cautious about investing in gas projects entailing high levels of capital-expenditure gas projects and effective financial planning will be the key.
Professional accountants will therefore be important to ensuring that value is preserved in this price sensitive environment.