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Oil and Gas Industry Can Implement New Ways of Working With Its Suppliers to Mitigate


ABU DHABI, UAE, June 17, 2020 /PRNewswire/ — The triple shock of COVID-19 and the subsequent collapse of energy demand and oil prices have put the future of the oil and gas industry’s oil field equipment supply sector under threat, as operators impose activity and price cuts and renegotiate contracts to reduce costs.” data-reactid=”14″ABU DHABI, UAE, June 17, 2020 /PRNewswire/ — The triple shock of COVID-19 and the subsequent collapse of energy demand and oil prices have put the future of the oil and gas industry’s oil field equipment supply sector under threat, as operators impose activity and price cuts and renegotiate contracts to reduce costs.

 

 

Alexey Dolya, Managing Director and Partner, at Boston Consulting Group, said more than half of oil field equipment suppliers are at risk of bankruptcy if oil prices remain at $30 per barrel until the end of the year. ” data-reactid=”28″Warning today’s industry crisis is significantly more severe than 2014, when oil prices fell by 40 percent, Alexey Dolya, Managing Director and Partner, at Boston Consulting Group, said more than half of oil field equipment suppliers are at risk of bankruptcy if oil prices remain at $30 per barrel until the end of the year. 

$30 per barrel oil market.” data-reactid=”30″In the short-term, he said, operators need to have forward-looking transparency into vendor financial health to mitigate supplier distress. In the medium term, operators and suppliers need to consider new technologies and strategic partnerships to unlock 20-50 percent lower costs to survive in a $30 per barrel oil market.

“The current crisis is very different to what we…



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2020-06-17 13:47:00

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