Surviving the worst: It's time for oil providers to address shortcomings and uncover strategic solutions
It appeared as if absolutely nothing could go incorrect for oil-area providers (OFS) businesses — until eventually lately. This yr, the spectacular collapse of oil price ranges and the require for oil and gasoline producers to sharply curtail their capital budgets have discovered elementary shortcomings and weaknesses in the OFS sector. During the development period of time, OFS businesses have basically experienced declining gain margins. Now, to survive the escalating monetary turmoil, OFS businesses will require to creatively pull a quantity of strategic levers: extra modern risk-sharing contracts, restructuring of internal prices, integration of sophisticated assistance offerings, and a extra coherent framework for reviewing their asset portfolio.