What are the greatest challenges facing small cap oil and gas companies in the next five years?

In preparation for the World Independent Oil Companies Congress I asked key speakers their thoughts on ‘What are the greatest challenges facing small cap oil and gas companies in the next five years?’. Here are their responses from the end of 2011:

**Mikhail Ivanov, CEO, Volga Gas

There is a budget deficit and sizable debt burden in many countries after the recent crisis. No wonder the governments want to put excessive tax load to oilies. Hence lobbying is important but may not be possible for small companies.

Offshore or deep well exploration will require much higher capital for drilling; hence, consolidation or cooperation.

**Andrew Buglass, Head of Energy Structured Finance, Corporate & Institutional Banking, RBS

Barriers to advancement, i.e. the acquisition of resources/reserves. How will they find the capital and human resources needed to establish credibility with national governments and larger companies?

Decommissioning, taxes

**Alec Robinson, President, Taipan Resources

Many challenges.  There is and will continue to be intense competition for good acreage and for investment dollars.  But also, obtaining and retaining qualified and experienced staff, as people retire, will be a major challenge.  There is a shortage of people in the next age-group.   

Do you agree with their comments?

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