Oil and Gas
Much of the oil and gas industry has survived an especially tough few years with weak demand and low prices. On one hand, reducing capital expenditure is a natural response to low oil prices, but on the other hand the industry needs to continue to explore and develop to meet long term demand.
These facts, in addition to the demand growth focused in emerging markets, increase of alternative energy sources, increasingly complex upstream projects, consolidation and competition for talent, has put the industry under an enormous pressure.
Under these circumstances, oil and gas companies have started to focus on their overall capital productivity and improving profits on a per barrel basis instead of looking at their capital efficiency indicator as they were used to.
To succeed, companies need to find creative and innovative ways to combat these challenges, adapting their mindsets as well as their business models and guarantee speed of execution. A commonality between many O&G clients is the great tenure of their employees, which creates a deep wisdom and expertise base within the organization. This can, however, make change and transformation more challenging as new mindsets, new skillsets, and new business models are needed to compete in the industry.
In addition, with the increasing connectivity of the business and the data/analytics to leverage, new skills are required from employees, as is enough empowerment within the culture (without risking safety & controls) to act on insights and make changes when opportunities arise.
Over the last decade, we have partnered with 8 of the 20 largest global oil and gas companies in the Top 400 of the Forbes’ 2017 Global 2000 list to help them develop the necessary alignment, capabilities and/or mindsets for strategy execution.