Efficiency the word as company margins squeezed
Anadarko’s Independence hub in the Gulf of Mexico. Companies are working to reduce inefficiencies. (Anadarko)
Low oil and gas prices have upstream companies looking for ways to cut costs and increase efficiencies by forming alliances they may not have considered before. Industry players are focusing on avoiding the duplication of tasks, with initiatives ranging from involving contractors in FEED work to standardising materials and processes.
Firms have been cracking down on internal inefficiencies for the past couple of years. In a persistently low oil price environment the focus has shifted to collaborating with others along the value chain to cut costs further.