Despite falling margins, E&P firms have exciting opportunities to deliver long-term value and gain competitive advantage.
The underlying economics of the upstream Exploration and Production (E&P) industry have fundamentally altered. It has become a margin business, with relentless pressure on unit cost performance and global competition for capital.
To adapt to this new economic reality, companies have to go further than recent tactical responses to the downturn. Instead we believe that for those players prepared to challenge conventional perceptions of ‘best-in-class’ and look outside of the sector for inspiration, exciting opportunities exist to deliver a step change - including bringing new technologies to the fore. We believe there are five key sources of long-term value:
Delivering the prize in E&P calls for targeted execution of high-value opportunities to complement continuous improvement efforts, along with a new entrepreneurial approach of ‘start small, fail fast, scale fast’.