Producer flexibility answers market forces
The petroleum industry was revolutionized in the 1980s when oil became a commodity and rising prices no longer ensured profits. Alliancing, partnering, integration and operator cooperation became economic responses to the 1990s market reality. The industry has long been a bastion of free-marketeering; competition among producers and service providers continues to control prices. But new, more efficient ways of doing business control costs in an industry buffeted by stagnant prices, a prolonged period of downsizing and increasingly difficult and remote operating environments. How long the new business atmosphere will last depends on industry needs and how well things work out. But based on the successes of the immediate past and the foreseeable future, the new cross-company business practices seem destined only to multiply.
- OSTI ID:
- 390315
- Journal Information:
- Petroleum Engineer International, Journal Name: Petroleum Engineer International Journal Issue: 7 Vol. 69; ISSN 0164-8322; ISSN PEEID4
- Country of Publication:
- United States
- Language:
- English
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