3 Data and Operations Reporting Best Practices to Boost Investor Confidence
- Dec 8, 2020 5:15 pm GMTDec 8, 2020 3:18 pm GMT
- 767 views
The coronavirus pandemic, combined with international disagreements over oil production levels, has left the energy industry flat-footed. Whereas oil demand had been trending upward steadily since 2006, orders for refined products have fallen off in 2020 by at least 20%.
To keep investors engaged, energy companies must act quickly to stop the bleeding and show business sustainability. One integral way to do this is through improved standardized reporting and disclosure systems, which provide better insights that translate to higher ROI.
Historically, the energy sector has focused resources on increasing profit margins and minimizing expenses during times of economic downturn. Oil and gas is an expensive industry, after all, and the technology and resources necessary to operate in it are often seen as high risk. However, those priorities and perceptions are changing. The energy sector is advancing its reporting capabilities — though it still has a ways to go to reach the ease and accountability that investors seek.