Negotiation skills and the ability to manage and resolve conflicts play an important role in the life of a petroleum industry professional. Examples range from negotiating an employment contract to establishing partnerships in oil and gas ventures and on to arranging business alliances with service providers. Conflicts can happen in a competitive or collaborative work environment, and if not managed properly, they can result in significant losses and failure to achieve business objectives.
Conflict and negotiation are aspects of running a business. Business owners face conflict with partners, managers, employees and the general public. Negotiation is often necessary to create an amicable solution for all parties involved in the conflict. Many small or home-based businesses avoid internal conflict and negotiation because owners are primarily responsible for completing business functions. However, external conflict and negotiation occur for most companies in the business environment.