Evans & Evans

Major changes continue to reverberate throughout the Natural Resources sector.

Most visibly, the unprecedented profitability of the oil and gas industry has led not only to aggressive competition over fossil fuel resources, but also to heavy investments in potential alternative forms of energy such as bio-fuels. In fact, when combined with the twin trends of globalization and consolidation, high energy costs have contributed to an almost perfect storm that has driven the sector to accept lower and lower margins. And with environmental pressure over climate change causing many regulators to demand cleaner, greener and often more expensive processes, this situation shows little signs of abating anytime soon.

Not surprisingly, there is no single solution to these complex challenges. Rather, to deal with these various factors, companies must focus on adopting a variety of new business practices. First, natural resource companies must develop distinctive strategies that focus on the creation of sustainable competitive advantages. For commodity markets where differentiation is difficult, companies will need to focus on differentiating their business models by emphasizing better service or appealing to stakeholder’s demands for more sustainable processes.

At the same time, natural resource companies must continue to aggressively pursue improving operational efficiencies. Whether through outsourcing or through acquisition, natural resource companies need to achieve optimum economies of scale. No less so, natural resource companies also need to continue investing in operational innovation in areas such as geomatics, robotics, optical controls and environmental engineering. To do these things, of course, requires consistent access to capital and that is the final element in the equation.

Evans & Evans helps ensure its clients overcome the obstacles faced in the natural resource sector. With almost twenty years of experience, E&E has worked with top executives in the areas of energy services, forestry, mining, oil and gas and power and utilities. In this latter capacity, E&E has executed hundreds of transactions for the natural resource sector, including acquisitions, IPO’s and private placements.

Through both corporate finance services and our advisory services, Evans & Evans helps companies develop the strategic insightfulness, operational excellence and technological innovation that have become the minimum requirements necessary to compete effectively in today’s natural resource sector.

If you’d like to find out more about Evans & Evans services, please contact us at info@evansevans.com.