The oil and gas industry is facing a year of reflection and restructuring to operate in a volatile price environment. The challenge, according to a report by DNV GL (“A New Reality: the outlook for the oil and gas industry in 2016”), is maintaining long-term strategy while still making necessary short-term cost cuts.
“The industry is correct in focusing on cost saving at the moment, but it also needs to think about how to be sustainable and resilient beyond the two-year horizon,” said Graham Bennett, vice president at DNV GL.
“We need to be in a situation where we are replacing reserves, and looking at future industry challenges so that we don’t keep going through these boom and bust cycles,” he added.
The report incorporates the views of more than 900 senior professionals and executives across the global oil and gas industry, and delivers an assessment of industry sentiment, confidence and priorities. This is supplemented by expert analysis of the key pressures facing the industry in 2016 and their likely impact.
The full report can be downloaded here.
By : DNV GL