Despite riding waves of disruption, the oil and gas exploration and production industry has not delivered the returns that that equity markets demand. With fluctuating prices and differing pressures across the world, three actions should be considered to deliver on the promise of a healthy future for upstream businesses:
- Reinvent the business model: Digital is playing a role in the transformation of how a company operates, but oil and gas companies must rethink their operating models to fully capture the benefits digital can bring.
- Reshape the fabric of industry: Following slow growth in the last couple of years, higher oil prices have triggered an explosion in upstream merger and acquisition activity that is fueling the expectation for increased returns.
- Reduce the value chain’s carbon footprint: To remain relevant, companies need to seek out resources with the lowest possible carbon footprint and cut down carbon emissions during the exploration and production process for upstream operations.
Speed and agility are essential to delivering on the digital agenda, but although experimentation is positive, the need to scale first and fast remains a challenge for most oil and gas companies.
