The oil & gas industry is known to be resilient. To be able to face sudden market downturns and do what it takes to keep afloat. The industry understands what is needed at times like these, and it’s not giving up, despite the loss of thousands of skilled talent. Producers and refiners have gotten creative at a time when costs need to be kept low, harnessing new technological advances and consolidating their strongest assets.
It’s true that the forecast for the oil patch seems a little dim,as the increase in supply of petroleum and other liquid fuels became twice that of consumption, but by slimming down on investments, shredding unprofitable units, and using more efficient technologies, oil companies can attempt to manage until we see the other side. Companies are learning what it means to become “fit for 50” (as in $50/barrel), and are learning how to redirect their efforts, emerging from a period of high growth and rapid expansion to sudden oversupply. Only those who can redirect their efforts properly and efficiently will survive, and they will be rewarded for their agility and decision making.
The oil & gas companies need to prepare for a sustained period of uncertainty, cut their losses, and wise about decision making processes to keep themselves as stable as possible during these volatile times.