Unconventional oil and gas operators are setting the pace for innovation, and influencing larger IOCs to apply learnings to conventional production. Companies who are able to rapidly adopt ideas and scale them will create a competitive advantage.
Chicago, IL (PRWEB)
May 31, 2017
In a new report on the oil and gas sector, authors urge companies to increase the pace of innovation and rethink business models–or struggle to win in this turbulent time.
The paper “The Oil & Gas Industry’s New Normal: Rethinking Innovation Priorities in the Age of Low Prices” identifies five emerging trends that are disrupting the global ecosystem:
- Market forces are fundamentally reshaping the industry.
- Companies are simplifying, moving away from the traditional high-cost, complex system.
- The primary operating system of the industry ecosystem is under threat.
- Players must speed up the “idea to adoption” process.
- Maximizing asset productivity is critical.
The implications are significant and widespread. Lead authors Peter Bryant and Satish Rao note that unconventional production will most likely keep prices in the $45 to $60 per barrel range for some time. The impact of this price cap is twofold: high-cost producers will struggle to thrive or survive, and there will be an urgent industry-wide imperative to become profitable at $45 to $55 per barrel.
Additionally, digital solutions represent a major opportunity. E&P companies are looking at non-traditional players as new partners, challenging the industry’s status quo and the relevance of traditional players in the digital world. As a result, the business model is shifting to more of a mixed world of Silicon…