Four Ways Management Consultants Can Help Oil and Gas Companies Look to the Future

In today’s “lower for longer” commodity pricing environment, even the best positioned oil and gas companies are experiencing market challenges. Despite these challenges, executives should not lose sight of opportunities to make transformative changes that can help them derive greater value from their businesses. To emerge from this prolonged scenario stronger than before, executives should look at fortifying areas of their businesses through sustainable cost reduction strategies as well as capital and workforce management. Lower energy prices may leave some of the heavily indebted producers vulnerable as interest payments swallow up cash. Some of those organizations may have little choice but to sell, find partners, or recapitalize themselves, creating a need for advisors to guide them through this. By taking a closer look at the following four areas with the help of management consulting expertise, companies can begin to see value, savings and greater efficiency in their operations, thus allowing them to focus on thriving.
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A Wake-Up Call for the Oil & Gas Industry

Building a Safer Business, Eliminating Contractor Risk and Ensuring Compliance Best Practice
The energy industry prides itself on its commitment to innovation; best practices; Health, Safety and Environment; and risk management. Yet for an industry with such a commitment, it has been slow to embrace HR innovations and understand the risk inherent within the contractor workforce. By developing such a new understanding and adopting innovative approaches to managing a contract workforce, it could make the difference between a company leading the energy revolution or experiencing catastrophic combustion.
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Managing the Oil and Gas Workforce for Long-Term Growth

“Recruiting in oil and gas has traditionally been a case of ‘square pegs for square holes’, but as the industry adjusts to a new phase of low oil prices, the importance of a more sustainable resourcing strategy with a long-term outlook becomes clear.”, says Petroplan’s Huw Rothwell.
Oil and gas firms are beholden to macroeconomic factors and exposed to substantial levels of risk relating to market volatility, uncertainty, and geopolitical instability. Despite the fact they are operating in a strategic global industry, many firms tend to be reactive. This can result in a form of short-termism.
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Training for an Evolving Oil and Gas Industry

In a 2014 global survey, 44 percent of oil and gas companies in the Americas said a skills shortage is the biggest threat to their industry — higher than capital costs, labor costs or even economic stability concerns. This is largely related to training issues, with many companies citing the lack of quality candidates and skilled employees available to train them. As more veteran employees retire, this challenge will only grow. Adding to that concern, according to a 2012 Bureau of Labor Statistics report, 80 percent of Millennials expect to change jobs every three years.
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