Clearly, the near-term impact on the industry appears devastating—many companies face an existential risk. The immediate response for all oil and gas companies should be to ensure the safety of its workforce and continuity of operations. Beyond that, many will announce cuts in broad capital and discretionary spend. However, the industry needs to recognize that both this cycle and the post-cycle will be different, and that it requires taking different measure, than from the 2014/15 downturn playbook to enable survival in the near term and to thrive in the medium term.
CEOs should consider five essential steps to take now to build resilience:
Each of these steps should include 30- 60- and 60+-day detailed plans, critical elements of which should feed into a CEO’s checklist for the short and medium term:
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Projections based on Accenture analysis and experience working with oil and gas companies.
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