Whether you have been involved in the oil and gas industry for decades or are relatively new to the scene, you have probably noticed that the process of finding, extracting and selling natural resources is highly competitive. You have probably been involved in your fair share of contract meetings where potential agreements are discussed and negotiated to create advantages for both parties. At Ehrlich, Pledger Law, LLP, we are familiar with the challenges of working in the oil and gas industry in California.
While all industries face competition from other successful companies, your involvement in oil and gas has probably exposed you to the excessive competition that can quickly deteriorate smaller companies if they are unprepared to make strategic moves in an efficient manner. According to Investopedia, some of the challenges you may face that could prevent you from being able to create new contracts include the following:
- The availability of alternative options for consumers who are looking for solutions that create less impact on the environment.
- The pulling, pushing and shifting power and influence that both buyers and sellers exert on the industry.
- The possibility that new entrants will enter the market and compromise your position.
- The constant competition with rivals who are also trying to build their presence and market their brand.
When you are aware of the challenges of maintaining your success and being able to negotiate new contracts, you can make more confident decisions that are both strategic and competitive. For more information about oil and gas transactions, visit our web page.