Best Path for Oil & Gas Cost Savings


Conventional thinking leads us to protect our strategic supplier relationships and resist the urge to ask for additional concessions during this period of lower oil prices. The thinking goes something like this…”if we are hurting badly due to the low commodity prices of oil, our suppliers will need to feel the hurt as well”. Companies should be strategic in approaching suppliers during current challenging times. There are specific supply chain approaches that should be adopted during the current difficult Oil & Gas environment.
 
If a supplier is part of the upstream oil production process, the supplier would likely be classified as a “direct” supplier and have a high likelihood of being a strategic supplier. Negotiations with these suppliers should be handled on a quarterly or annual basis to explore innovation, best practices, and quality. These suppliers are managed differently and with a closer business relationship than an “indirect” supplier.
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Best Practices: Managing Data through Organizational Transformation


Big Data, while still in its relative early stages as a trend in the Oil and Gas industry, is forcing midstream organizations to evaluate how best to handle it now and in the future. At the same time, the industry is realizing the current industry climate, while challenging, is allowing for a period of strategic transformations. Organizations must take control of unsustainable database growth and other difficulties presented by Big Data, however, if they want to be able to respond quickly to changing market conditions. Rather than letting too much data become an expensive and time consuming problem that prevents necessary corporate transformations, organizations should ensure that they are taking the proper steps towards successfully managing data now and in the future.
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Sunny Days Ahead for Oil and Gas Joint Ventures


With the price of oil sinking on a daily basis, instability in key areas such as Russia and the Middle-East, a push to develop renewal energy sources and the ghost of the recent market crash still hanging over the major economies of the world, the oil and gas industry is in the midst of uncertain times. However, there is still a clear need and market for oil and gas products and that means that there are opportunities. Well-capitalized companies and private equity players have turned to the oil and gas market seeing opportunities to acquire both companies and assets and to invest in emerging jurisdictions. In order to facilitate these complex investments that can bring together funding from multiple countries, parties can benefit from using investment and joint venture vehicles in international finance centres with which they are familiar and which allow for flexibility of structuring, ease of use and speed of incorporation. The British Virgin Islands (BVI) and the Cayman Islands offer all of these advantages and more and are the jurisdictions of choice for savvy investors.
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Drilling into Data: Oil and Gas Companies Discovering Operational Efficiencies in Data-Driven Innovations


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.
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