The ‘lower for longer' oil price has forced upstream Oil & Gas companies to look hard at their costs.
Every industry faces pressure to transform and we all know that transformation begins by aligning an organisation for greater effectiveness. We also know that this can largely be achieved by placing discipline and focus on productivity, squeezing the supply-chain to achieve better margins and streamlining business operations.
Many have turned to their technology partners for help.
“Technology is helping to integrate vital business components so that the right answers are delivered to the right people, at the right time and in the right way” says Peter Davis, Business Unit Head, TouchstoneEnergy.
It's our opinion the Oil & Gas industry is truly leading by example. O&G companies are using technologies such as Business Process Management systems; or moving their IT infrastructure out to the Cloud. This can result in a leaner, more agile organisational model whilst delivering significant cost savings.
Two organisations who have taken advantage of such technologies are Seven Energy International Limited and SOCO International Plc. Both are now delivering more to stakeholders with a smaller head count and maintaining lower operating costs. Both are experiencing an enhanced competitive position with happier investors.
Although not ideal for producers who would prefer a rise in the price per barrel; improved operational procedures have delivered significantly better financial results. Many E&P companies have moved away from chasing barrels and onto chasing efficiencies – and the results are already evident.
Visit source siteTouchstoneSOCO Internationaloil priceOil Price predictions2017 Oil industry PredictionsUpstream oil and gasEconomic drivers of UpstreamProductionBusiness Process