The collapse in oil price in the second half of 2014 has brought a sharp cash crunch to the industry. R&D spending in oil and gas rose over the last decade, following prices and as companies have taken on more complex and challenging projects. By 2013, leading researchers and developers in the oil and gas sector were spending over $15 billion annually, double that of a decade earlier.
Theresa Cangialosi | Bullitt Group
Oil & Gas Workforce Retention
In the world of oil and gas, many companies such as BP, Chevron, Conoco Philips and ExxonMobil to name a few are making employee perks an important part of their workforce retention and benefits plans. These companies are turning to strategies such as building state-of-the-art campuses and offering custom technology solutions to woo top college graduates, build the most talented workforce and ensure employee happiness.
Dr. Jeffrey S. Durmer | FusionHealth
As future success in the oil and gas industry hinges on increasing efficiencies, companies will invest in the production capabilities of both emerging technologies and highly-skilled workers. One of the two can work non-stop day and night while maintaining precision and accuracy. The other has unique skills that cannot be replicated by a machine, but, without adequate rest, functions at ineffective or counter-effective levels. Whether fatigue is the result of long shifts requiring high vigilance or an undiagnosed sleep disorder, oil and gas workers are prone to fatigue as a result of poor sleep quality, quantity and timing.
Donald Fisher | Software AG
Although consumers might be gung-ho to pay cheaper prices at the gas pump, the plunge in oil prices for oil and gas companies is far from exciting. With prices down by 50% from their height in 2014, these fluctuating oil prices will cause major shifts in mergers and acquisitions, as well as push oil companies to embrace innovations. More specifically, companies are going to look towards the real-time data collected from Internet of Things (IoT) to optimize processes and create efficiencies.
So, How Did We Get Here?
By the law of supply and demand, it was inevitable that oil and gas prices would drop. With Saudi Arabia as a driving force within OPEC, their push to continue oil production despite the falling prices led to a continuing oversupply of oil. As the Saudis strived to maintain their market share, they signaled they had no intent to cut back on oil production, even though the decreased supply would raise the prices. They feared that had they done so, they would lose market share to other oil producers, depreciating the Saudi influence within the market.