The new situation forces us to reinvent ourselves and adapt to new changes at all levels and in all sectors. What have been the main changes in the oil & gas sector? What trends will come from now on? Each sector has experienced this situation differently. Some have seen it as a business opportunity and have been transformed to meet new challenges, while others have suffered from stagnation. But if there is one thing that is common to all, it is adaptation to the new reality. Read on and you will discover what the future of the oil & gas sector is.
A new reality for oil and gas
This is already the third crisis in the sector in 12 years. What was the main reason for this? The combination of the interruption in demand due to the health crisis we have experienced and the excess supply. The forecast is that oil prices will recover in two years, so at least until 2022 the times for these companies will be difficult, especially for those that focus on fuel for planes which, with the flight restrictions, have been very affected. But what can these companies do to overcome this situation and not let new opportunities escape?
- It is time to make strategic decisions and allocate capital to the highest return opportunities. Reinvention is still very much in the air and it is time for companies to assess how changes in oil prices have affected the exceptional situation we have experienced and to face new challenges and solutions. What are the most profitable assets? They need to be identified and prioritized over the rest.
The sector is currently experiencing uncertain demand. It is precisely these variations that make it necessary to make decisions quickly in order for the company to move forward: reducing processes that were underway, closing plants or incorporating new strategies will be crucial in order to move forward.
In recent months the sector has stagnated due to the low mobility of vehicles, planes and business travel. Although it is expected to increase gradually, the policy of each government will mark the progress of the sector in each territory. Therefore, it is very important to be attentive and identify everything that can improve our business.
- Make bold moves to incorporate new companies into our company. Open horizons and analyze your environment. Perhaps there is an opportunity that you have not yet detected that could be very interesting for your company. Are you ready to unfold all your senses?
- Work with new business models and collaboration with suppliers to reduce costs. Although gas and oil will continue to be a very invested market, renewable energies are still very strong, so any process that serves to improve will have to be adjusted. Resilience will be essential at this stage. And not only will business and collaboration models be updated, but businesses will have to reposition and adapt their operating models to make the most of the new reality. How does your company deal with all this?
- This is also the time to consolidate as a good organization, both in terms of talent and structure. Having a more horizontal organization, reducing bureaucracy and incorporating more useful ways of working will be fundamental to face the new reality.
Oil & gas companies must go further and commit to maintaining talent by offering more opportunities for professional development, something that will especially attract professionals from the sector.
And how will all this affect recruitment in the oil & gas sector? Are companies prepared to face the changes that will involve the whole team? Incorporating new strategies will be crucial at this time, and all of this with the team’s well-being in mind. Is now more than ever the time for committed leadership? Will the leaders be fundamental in generating commitment and achieving the reactivation of demand in the sector?
Building trust will be one of the keys, since the current situation will require everyone’s commitment. But oil & gas companies will have to go further and bet on keeping the talent by offering more opportunities for professional development. Are you ready for what is to come?