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For example, a lot is invested in automating the drilling and dismantling workflow, so that fewer people are needed and better information about the various processes in the workflow. Many equipment services and purchases are currently outsourced to different vendors, resulting in complexity and a fragmented vendor base. Several OFSE companies are now bringing these services in-house, with integrated offerings that reduce coordination costs. For example, Schlumberger’s SIS division offers a software backbone based on its Petrel software platform. This allows an operator to develop a vision of the oil and gas potential in a reservoir, model the field, plan the wells, and complete the design.

Most alarm management systems focus on crises after failures rather than being online in real time to reduce infrastructure downtime. Oil and gas processing plants have complex operations consisting of different units communicating with each other, so working with real data can be demanding and challenging.

With recognized market leadership in the field of process safety, our experts specialize in integrated technical solutions and safety services. By 2030, oil and gas will cover 60% of global energy demand, with more and more oil and gas being used in power generation. At the same time, almost all oil and gas processes upstream, halfway or downstream require reliable power. And in the face of well exhaustion, even more energy will be required for additional production techniques, such as depletion compression. Therefore, the power supply must be efficient and reliable at all times, even in remote locations. Siemens TIP solutions address the unique economic and process requirements of this industry.

In an effort to deliver offshore power plants from the continent’s interconnected grid, the industry is constantly looking for better solutions that address space needs, maintenance and investment, or personnel costs. And in times of digitization, complex energy automation systems are confronted with increasing demands. All components must work together seamlessly, while processes must remain transparent and available. It’s time for companies to look for new ways to share indirect costs in new ways, whether it’s outsourcing, joint ventures, or employees with shared contracts.

The management of these companies should include debt adjustments as part of their strategy. Investors, bankers and regulators are urging the upstream oil and gas industry to reduce its carbon footprint. If the industry does not respond, restrictions will be imposed on them that can affect their long-term profitability. John Baumgartner, managing director of Grant Thornton’s Houston office, suggests that every company should take a closer look at its own footprint. They would benefit, Baumgartner said, by finding ways to reduce gas leakage in the atmosphere, eliminate or reduce routine combustion and bring that gas to market.

The industry continues to experience a dynamic of supply and demand that results in meager commodity prices. Oil and gas companies are under increased pressure to reduce carbon dioxide emissions to address climate change, as well as pressure from Biden’s American Jobs Act plans to spend funds on clean energy projects. Since these factors are likely to persist, a company should consider making some key strategic decisions to ensure their sustainability and maximize their value to stakeholders.

Due to the economic downturn of COVID-19, companies have learned to run their business remotely, proving that having a full-time employee in an office may not be necessary. This gives management the freedom to come up with new methods to get the same quality of service through shared services. To succeed in today’s oil and gas markets, successful exploration and production companies must include strategy development as an ongoing critical process. For example, analyzing the fundamentals of commodity prices is a challenge, forcing executive teams to constantly reassess where to invest their time and estimates. Companies in the oil and gas industry can’t just execute strategic planning every few years, but need to make it part of their day-to-day decision-making.

For much of the history of the industry, natural gas was seen as a nuisance, and even today it burns in large quantities in some parts of the world, including the United States. Natural gas has gained a more prominent role in the world’s energy supply as a result of the development of shale gas in the United States, as mentioned above, medium for the oil and gas giant and the lower greenhouse gas emissions from combustion compared to oil and coal. Our clients have access to more than 400 consultants with extensive experience in oil and gas strategy, a global network of industry experts and external advisors, and extensive cross-sector experience from our Corporate Finance and Strategy Practice.

This also prevents the distraction of non-essential data and guides employees to better process visibility, better decision-making and more security. By using invoice factoring in your oil and gas business, you not only have direct access to the money you owe your business, but you also have the resources you need to grow. This financial service can help your business secure a solid source of working capital that will make growth in new markets, segments and partnerships easier than ever. The best way to grow an oil and gas business is to make sure you unlock your cash flow bottlenecks, use technology, and create the most value for your customers. Because companies focus on research exploration and production, they leave everything else to third parties. For the oil and gas industry, IAM can help reduce costs, reduce downtime, increase the use of production and assets, and increase efficiency.

Our expertise in the oil and gas value chain and our collaboration with leading technology companies offer a unique combination of resources. Leverage our insights to create efficiencies now while transforming for long-term growth in a new energy world. The industry needs new business models, streamlined portfolios, accelerated investment in digital technologies and more capital flexibility. Growth and expansion in the oil and gas industry has led companies to expand their operations and take on more projects, leading to a greater demand for skilled workers. Despite projections that nearly all of the United States will be vaccinated by the end of the year, the forces causing the industry’s recession will remain present.