Creating an intelligent enterprise
Oil and gas companies are awash with data that describes how the many parts of the company are operating and performing. But in most organizations, this data is siloed across the company, which makes it helpful to optimize individual departments, but almost impossible to get a single, comprehensible picture of the business. Adopting the systems and skills to create a more connected, agile, intelligent enterprise can unlock the true value of data to guide better decisions around capital allocation, recruitment and incentivization.
Transforming the back office
As companies reshape for a different future, focusing talent and resources on improving core competencies can help guide successful transformation. For most oil and gas companies, these core competencies revolve around extracting the maximum value from the hydrocarbon. Non-core functions, such as tax and finance, cybersecurity, payroll, and compliance, while critical, do not directly improve extraction and production of resources. We see more of the sector’s leading companies moving towards a next-generation back-office experience, working with managed services partners who combine best practice, top talent and leading technology to truly transform the back office, allowing leaders to focus on the core business.
Planning for growth and transition
While the hydrocarbon era will end eventually, no one knows how quickly. Now is the time for oil and gas companies to consider their own strategies to transition when the time comes, and to grow sustainably in the meantime. This means determining their role in addressing immediate challenges to energy supply security. Oil and gas economics are as favorable as they have been for some time, and capital is abundant. Companies face a trade-off between continuing the core business while prices are good and pursuing new energy opportunities that may offer lower returns now, but the potential to create more value in the longer-term. Some companies will use cash from legacy businesses to fund alternatives while others will divest those businesses. As companies rebalance, we may see assets in the hands of private companies that are less subject to the pressures that come with raising capital in the public markets.