The energy industry is experiencing its most severe downturn in decades and those involved face the difficult and painful prospect of having to quickly transform their business to remain relevant and prosperous. But that’s not all. We’ve also entered a period in which CO2 emissions’ effect on Earth’s climate is assuming greater prominence in the world’s economies, as punctuated by the COP21 agreement last December. This edition of Energy Perspectives provides the latest thinking from Accenture Strategy on what oil and gas companies must do to prosper in a volatile, “lower for longer” environment.
Energy Perspectives: Rougher seas ahead
How the energy industry can—and must—transform to survive and thrive in today's challenging times.
Overview
Key Findings
This edition of Energy Perspectives features eight articles and one interview that provide valuable insights on current developments within the industry, the implications for E&P companies and other related players, and actions to take now to weather the storm and devise sustainable long-term strategies. Topics include:
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Changes in supply-demand dynamics and the two durable trends they are shaping
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Implications of COP21 for the energy industry
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Effect of the crisis on countries holding hydrocarbon resources
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Strategic and operational issues operators face (including those specific to North American LTO operators)
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Transformative potential of analytics (big data) and digital capabilities in the upstream oil and gas industry
Energy Perspectives
Recommendations
Today’s trends require O&G companies to think much differently about their strategies and operations in the next several years. Specifically, they must move away from typical immediate but often short-sighted responses: Selling assets, cutting investments, slashing headcount, and squeezing suppliers. Instead, they should carefully review their underlying operating models, organization, and capabilities. That’s the first step toward enacting long-needed structural reforms across the industry. Such reforms are necessary to restore competitiveness in a lower-price, higher-volatility environment and to prepare companies to thrive through future cycles.
Authors
Arthur Hanna
Senior Managing Director – Accenture Strategy, Energy
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Jean-Marie Rousset
Managing Director – Accenture Strategy, Energy
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