Over the past decade, hydrocarbon trading practices have seen radical change for the better. More regulation, in most countries of the world, and tracking technologies have improved shipping practices. At one time, it was common practice for ships to dump oil in the oceans. Today it would be impossible to do this without the misdemeanour being spotted and incurring massive fines.

Technology has also supported the authorities in monitoring market compliance. These days, everyone from oil majors, to traders and banks are all behaving better. But while the markets have welcomed better regulation and control, this has led to a squeeze on margins. Hydrocarbon players are looking upstream and downstream to driven revenues and traditional chains of trading are extending.

As the chain of trading activities lengthens, risk increases and audit trails become more complex. Systems need to be able to connect to and integrate a growing number of data sources, from automated vessel tracking through to inspection and pre and post-trading data. Increasingly, oil and gas businesses need to be able to track and report on their trading chain activity to regulators and tax authorities. Leading-edge players will increasingly use this data to spot opportunities and add value.

Driving revenue for an oil and gas-focused mid-term, while planning for transformational change for the long term is the key challenge. Businesses that rise to the challenge will be those that succeed in the 2020s and beyond.