For the foreseeable future, over-production will continue to cause a significant global supply glut in the oil and gas market, which in turn means prices will stay low. A new report from consulting firm Maine Pointe provides perspectives on how recent developments and future trends will present both challenges and opportunities in the North American oil and gas market during the remainder of 2015 and heading into 2016.
The report, “The New Reality in the Oil & Gas Industry” provides insight into:
- The impact of Iran’s return to the oil market.
- The fundamental differences between the 2015 downturn and the one that occurred in 2008.
- How companies can not only survive but also thrive in an oversupplied market.
- Overcoming organizational hurdles: doing “more with less talent.”
- Four operational improvement areas many oil companies have overlooked.
“With oil prices staying low, the only way companies can drive profits is to drive down costs,” said Steve Hamilton, co-author of the report and executive vice president of oil and gas at Maine Pointe. “Oil companies are looking deeper into their value chain to reduce their direct spend.”
The report states that the only way oil companies can drive up profits is to drive down costs, and that means “looking deep into your value chain to identify where savings can be made.”
Co-author Ian Hedding, executive vice president of oil and gas at Maine Pointe, added, “In an effort to lower costs, many of the senior executives we have met with are already looking at areas that they have traditionally missed from an operational or process perspective.”
To download and read the report, visit: mainepointe.com/the-new-reality-in-the-oil-and-gas-industry.