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Oil and Gas

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The 2020 disruption to oil and gas global supply chains and consumer demand, brought a realisation that the moment of ‘peak oil’ has been reached and is now in long-term decline. Yet, many opportunities are presenting themselves for organisations to not just survive, but to thrive in a new era.

Now is the time to be as economic as possible by adopting a stance that involves optimisation of assets; enhanced maintenance to drive full efficiency; closure of unproductive facilities; and/or a realignment toward investment in new energy, such as wind and solar. 

In this highly competitive landscape, the biggest risk is being reactive or slow in response. Here are some key and tough business challenges we are regularly working with key players in the industry to address:

Competing in a world of diminishing demand

Optimising capital allocation for a lean operation

Organisational restructuring to prioritise performance

As things stand, the oldest, most expensive refineries may be the first to close. By optimising costs early as competitors ebb away, opportunities can arise to build a leaner operation with a greater market share.

The world will need energy for decades to come, yet the overall demand will decline. In a highly competitive landscape, the highest-cost producers face an immediate and urgent need to identify and deliver operating efficiency.

Some will close marginal profit refineries to become leaner and more aggressive in the face of fierce competition for market share. Others may pivot toward investment in renewables – an option for industry players who decide to become a ‘fuel for transportation’ provider.

The way forward

We find this challenge less daunting once there is a clear picture of where the organisation is currently positioned.

We begin by understanding how much improvement is possible, where it lies in your organisation and what it is worth. From there you can begin to develop the roadmap around which parts of the operations represent the biggest opportunity and align a work plan on how to capture that value effectively and efficiently.

For many organisations, both their future and short-term plans are now vulnerable to the plateau in demand for oil and gas. What is the right path to begin reducing costs and optimise existing assets?

The days of $200 per barrel are a thing of the past. For organisations that had not started acting on that, a potential downturn would become the new reality. There is an immediate need to change their labour model in a way that is future-proofed to provide a long-term edge over their competitors.

A tighter focus on capital investment and cost reductions can be difficult to navigate in a corporate culture where it is foreign, yet this is not a journey that any organisation should feel they must take alone.

Creating consensus

Our approach is designed to create consensus and alignment, identify net cash benefits and prioritise opportunities.

In practice, we reduce costs for organisations by restructuring departments, promoting greater accountability across roles and implementing new key performance indicators.

Organisational restructures are typically regarded as a last resort due to necessity – essentially a defensive move. Instead, they should be viewed as an opportunity for continuous improvement.

Restructure is often feared by companies and seen as an overt acknowledgement that the status quo is no longer 'fit for purpose'. In fact, it is an opportunity to embed continuous improvement principles across an organisation, so it becomes self-perpetuating and a constant focus.

Any such change can only begin from a place of curiosity and understanding. What are the best practices? How are existing processes and systems perceived by employees? How are performances measured and managed?

The way forward

Your people represent your biggest opportunity, and often also the biggest challenge. Gaining a ‘frontline’ view of your core operations around what is and is not working, not only helps you to identify improvement opportunities, but it creates buy-in around operational and organisational changes.

Russ Maney

The oil and gas industry is set to change. Those that will succeed in the near future will be the ones who get the most volume for the least cost and spend their capital most efficiently. Our job is to train you and your organisation to be one step ahead for what comes next.

Russ Maney

Director

Our work in the energy industry across a broad range of functions has provided us with the opportunity to help weak assets survive and strong assets thrive in this fast-changing landscape. 

Our global team of experts includes a mix of consultants and industry experts with substantial experience across refineries, conventional and unconventional oil and gas, as well as new energy.

We work in close partnership with our clients to deliver results at every stage of the project lifecycle, coaching at all levels to ensure the necessary skills and tools are fully embedded across the organisation to ensure long-term success.

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10% procurement and supply chain savings with 5-10% in large categories and 5-8% in tail spend savings

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75% emission reduction through the design and execution of plans to reduce emissions and GHG footprint from ongoing operations

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accelerate construction processes by 20-30%, ensuring asset delivery at or better than time and budget targets

Client success stories

Success

Created an emission reduction strategy to reduce greenhouse gas intensity by 70% through NPV+ projects

Identified a 35% EBIT improvement pipeline at a large and complex oil refinery

Optimised base production in unconventionals, reducing production loss level to less than 3%

Meet our Oil and Gas leadership

Russ Maney

Russ Maney

Director

North America

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