Drilling into Data: Oil and Gas Companies Discovering Operational Efficiencies in Data-Driven Innovations
Brent Potts | SAP
Across the globe, oil and gas executives are anxiously watching fluctuating commodity prices, as recent dramatic dips have seen revenues cut significantly. Being a cyclical industry, they all know that oil and gas prices will rise again, although the timing seems to be anyone’s guess. In the interim, there is a keen focus on cash flow and cost cutting, particularly on recurring costs. However, best practices dictate the need to be able to ramp-up operations and production quickly when the market does recover.
In The Headlines
Mercy Harper | APQC
Energy firms are pouring significant resources into STEM education and the recruitment of young scientists and engineers. But these measures will not fill the industry’s current talent gap quickly enough. Companies large and small need to accelerate learning for the workers they already have, shortening time-to-competency for new hires and preparing mid-career people to step into the shoes of retiring experts. Recent APQC research found that 72% of oil and gas leaders report that developing the expertise of STEM employees is a significant or urgent priority. Pending retirements are fueling a lot of the concern, but industry leaders also cite the need to keep pace with new technologies and innovations as a key driver. To effectively accelerate the rate of learning and prepare employees to take on bigger challenges in the field, firms need to connect employees with up-to-the-minute trusted technical knowledge wherever they need it—whether that’s in the office or out on a rig.
Topic of Discussion
Adapting to the “New Normal” in O&G Construction: How the Market Will Endure Growing Regulatory, Labor and Commodity Pricing Pressures
On February 24, President Obama vetoed legislation authorizing TransCanada’s Keystone XL pipeline. The 7-year regulatory saga is emblematic of the regulatory and public relations burdens on U.S. energy projects. With the Keystone veto, this burden will grow.
However, the difficulties faced by the U.S. energy infrastructure market do not end there. Trade labor markets are tightening and lower commodity prices have made funding and executing projects a struggle. These three factors – regulatory uncertainty, trade labor constraints, and commodity pricing volatility – represent a “new normal” for energy infrastructure markets in the U.S. They also present a unique opportunity for the contractor community to meet the challenges of a rapidly changing marketplace.