This document summarizes the results of a 2014 survey of 564 executives from U.S. oil and gas companies. The top three operational barriers to growth cited were regulatory uncertainty, staffing challenges, and infrastructure issues. Respondents expected to increase hiring and capital spending in 2015 but were concerned about regulatory complexity, safety risks, and a competitive acquisition environment. The survey aimed to understand pain points currently facing the American energy sector.

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About the 2014 Grant Thornton LLP survey of upstream U.S. oil and
gas companies
The survey is based on answers from 564 respondents collected in July
2014. Respondents were C-suite and senior executives from U.S. independent
producers, midstream operators, oilfield service companies and financial
companies. Participant titles included CEO, COO, CFO, CIO, senior vice
president, board member, general counsel, and tax and finance professional.
1 Institute for Energy Research, “U.S. Overtakes Saudi Arabia and Russia as Largest Oil Producer,” July 10, 2014,
http://instituteforenergyresearch.org/analysis/u-s-overtakes-saudi-arabia-russia-worlds-biggest-oil-producer
Regulations, staffing keep energy
executives on their toes
2014 survey of U.S. oil and gas companies
The American energy sector is booming like never before. Record domestic
oil and natural gas production have ranked the U.S. output above that of
Russia and Saudi Arabia1. Such explosive growth, however, is challenged
by regulations and a competitive M&A landscape, according to respondents
to a Grant Thornton LLP and Hart Energy 2014 survey of the energy
industry. Here are some of the key pain points for executives.
OBSTACLES TO GROWTH
Top 3 operational barriers to sustained growth
How regulatory
uncertainty affects the
energy industry
Staffing is a priority amid shortage of workforce
Federal, state and
local regulations
1 in 2 say finding and
retaining the right people
is the biggest operational
infrastructure challenge
3 in 5 project that they’ll
need to hire more in 2015
Safety, acquisitions are top risks
Henry Hub natural gas price projections
(per 1,000 cubic feet)
Capital spending increase in 2015
Domestic Foreign
More than 20% 30% 5%
Up to 20% 37% 11%
Decrease 5% 2%
No change 18% 17%
A hot M&A market means
more challenges
West Texas Intermediate crude oil
price projections (per barrel)
Safety and
environmental
2015 2016 2017
$4.50 $4.81 $5.12
2015 2016 2017
$97.99 $98.28 $98.66
LOOKING FORWARD: PRICES AND CAPITAL SPENDING
Capital
Competition for assets/
targets for acquisition
see policy support
and public perception
as barriers
6%
are worried about
fraud and corruption
Acquisitions and
transactions
Ineffective internal
controls
38%
22%
16%
33%
31%
20%
2%
26%
It’s difficult to plan effectively
Regulation volume and complexity
make compliance challenging
Can’t forecast economic
consequences of changing regulations
29%
20%
High costs due
to competition
Quality of assets
on the market
Access
to capital
31% 17% 12%
For more survey findings, please visit
grantthornton.com/2014energysurvey