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Strategic partnerships, alliances used to find ways to cut costs

Journal Article · · Oil and Gas Journal; (United States)
OSTI ID:6037162
;  [1]
  1. Gemini Consulting, Morristown, NJ (United States)

In a commoditized industry like oil and gas, building a sustainable source of competitive advantage is difficult at best. By and large, oil and gas companies are packed in a footrace to cut costs, increase efficiency, and gain market share. It is such a tight race that virtually every contender has reorganized, right-sized, and rationalized to the point that their cost-cutting programs have themselves become a commodity. Facing this problem, many firms are turning to strategic partnership and alliances to find new, more-permanent ways to cut costs. Partnerships and alliances offer many new avenues for cutting costs and significant advantages over more traditional approaches. Those firms that take advantage of these opportunities by bundling operations in new ways to create new organizations will be the industry leaders in years to come.

OSTI ID:
6037162
Journal Information:
Oil and Gas Journal; (United States), Journal Name: Oil and Gas Journal; (United States) Vol. 91:45; ISSN OIGJAV; ISSN 0030-1388
Country of Publication:
United States
Language:
English

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