Editorial

Performance improvement - the low price environment

We discuss riding out the downturn now the easy gains have been made

Opex and capex per barrel remain significantly above 2004 levels, even despite widespread cost cutting by operators, who are adjusting to the low oil price environment.

Many companies have brought their cashflow breakeven down, nonetheless the weight of action has fallen on dividend distributions and investment.

Andy Tidey, Jozef Furmanek and Aamir Malik discuss how upstream companies are only now making structural changes to account for the continued low price cycle. Those companies are also discovering some new opportunities as a consequence of this rigorous evaluation.