The oil and gas industry was already facing significant disruption before the pandemic, which hit the industry hard as prices bottomed-out along with investor sentiment. As part of its efforts to help oil and gas clients find their footing amid unprecedented challenges, Alvarez & Marsal recently announced the hiring of 30-year energy and financial management industry veteran Patrick Hickey as a Managing Director in the firm's Houston-based energy group within its Corporate Performance Improvement (CPI) practice. Consulting recently caught up with Hickey to talk about the evolving oil and gas landscape, unique challenges the sector is facing in the waning days of the pandemic, and the consulting opportunities he sees in the marketplace.
Consulting: What do you see as the overall state of the oil and gas market?
Hickey: The industry was experiencing a downturn with poor investor sentiment even before the pandemic. Then, COVID-19 hit. That paired with the Russia OPEC price war sent things into a tailspin in 2020. Overall, substantial headwinds remain for the sector including ESG concerns, capital available only for "better brand" names, and continued pressure from investors to re-allocate capital and deliver a return on capital.
