It wasn’t but a few months ago that we discussed the dire situation the oil and gas industry finds itself in. The E&P industry was eroding value–on average 35 percent on a price normalized basis–due to poor capital discipline, almost non-existent portfolio management, and poor practices. We exhorted the industry and the business leadership to urgently focus on controlling the rising project costs or the industry would find itself in a serious crisis. However, high oil prices cushioned the effect of poor practices and muffled the hearing of the industry!
What a difference a few months make! The crisis is here and the new normal–low oil prices–is probably here to stay. Oil and gas operators–large and small, EPC players, vendors, and service providers—are all trying to navigate their way through this mess and are finding it difficult. This is not surprising. Since the industry didn’t need to focus on cost for the better part of 15 years, we really don’t know how to do it.
This talk will draw upon the vast Independent Project Analysis, Inc. (IPA) database of capital projects and lessons learned to present an agenda for the lull. Specifically, we will discuss the things businesses should be doing right now that will make their companies emerge stronger from this crisis. We will also discuss the easy and tempting short term tactics that will actually end up weakening firms and the industry in the long run.
To register for the Webinar version of this event, please Register Here.