Despite significant actions taken on the cost and efficiency agenda over the last 24 months, cost and performance improvement will continue to be a priority for operators, governments and service companies.
With expectations for the oil price to remain below $80 through to 2019, action on cost and efficiency will be required to drive financial performance. Despite the actions already taken, opex and capex per barrel remain significantly above 2004 levels. Many operators have successfully reduced their cashflow breakeven, but the weight of action has fallen on dividend distributions and investment. The service companies have taken a significant margin hit and are facing thin order books.
The challenge across the energy and natural sector is to build performance management and performance improvement into the core of the organisation. The industry's traditional approach to financial pressures has to focus on cutting costs, through deferring projects, scaling back activity plans, cutting headcount and squeezing supplier rates. These approaches can deliver short term results, but very often create longer term performance issues and amplify the boom and bust cycle along the supply chain.
We believe that performance improvement needs to be central to the ways that companies in the energy and natural resources sectors work.
Focusing on sustainable improvements to strengthen your bottom line
Our Performance Improvement team works with leaders in the energy and natural resources sector to increase production, reduce cost and improve profitability. We bring together deep practical experience in driving bottom line results with Wood Mackenzie's market leading industry knowledge.
We work closely with management teams to:
- Identify material performance improvement opportunities
- Develop business cases that are underpinned by financial and analytical rigour
- Design implementation plans that drive accountability and clearly link actions to financial outcomes
We can help you focus on material opportunities by working across the P&L and balance sheet, and exploiting our extensive hands-on experience across the energy and natural resources sectors.
Take advantage of a proven track record in Performance Improvement
Our team has delivered multiple billions of dollars from over 100 Performance Improvement engagements across the energy and natural resources sectors
Leverage commercially driven results coupled with deep industry content
We focus on material financial opportunities and ensure that our business cases are underpinned by deal-level financial and analytical rigour. The plans and financials that we develop provide a solid base to drive accountability for delivery.
Together with our position as a global leader in commercial intelligence for the upstream sector, we are able to draw upon our worldwide network of dedicated analysts and subject matter experts to give you the complete commercial picture.
How can we help you?
To discuss how our team can help you strengthen your bottom line, please Register Your Interest, below.
Head of Performance Improvement
+44 20 3060 8766
Vice-President, Performance Improvement
+44 20 3060 8762
Principal Consultant, Performance Improvement
+44 20 3060 8776
Managing Consultant, Performance Improvement
+44 20 3060 8758
More from the Performance Improvement team:
Read about sustainability risks in our new blog: Progress on opex – but will it stick?
Read about operating costs in our recent blog: Operating cost: has the oil industry really moved the needle?
Read our blog on upstream cost management: Breaking the cycle? Cost efficiency in upstream oil and gas
Watch the first video to find out more about Performance Improvement and to meet the team: What is Performance Improvement?
Download the full 2016 report on cost management in upstream oil and gas: Has Upstream kicked its cost problem?
Download the full 2015 report on cost management in upstream oil and gas: Crash diet or lifestyle change?