Operational realities of the `90s
- de Wardt and Co., Houston, TX (United States)
The upstream oil and gas industry has tried to apply traditional remedies to relieve cost-cutting stresses that started with oil price drops. But it`s not a cycle that the industry will come out of, and a new approach is needed. This article describes new organizational terms and introduces a new model for profitable hydrocarbon development. Preliminary discussions include topics of: the tight financial environment, what happened when oil became a commodity and prices declined--operator margins, life cycle costs, Capex and Opex; how oil companies reorganized; why typical cycles of reacting to low margins by bundling/unbundling, consolidating and downsizing are not applicable; how the new industrial era will be different--the change to lean enterprises, with examples from the automobile industry.
- OSTI ID:
- 237997
- Journal Information:
- World Oil, Journal Name: World Oil Journal Issue: 2 Vol. 217; ISSN 0043-8790; ISSN WOOIAS
- Country of Publication:
- United States
- Language:
- English
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