April 2020 saw oil prices dip negative for the first time in memory. A mixture of COVID-19 travel restrictions worldwide, an oil price war and potential global recession led the oil price to tumble. As a cyclical industry, the oil and gas sector is well-used to weathering storms, but this is the second in quick succession after the 2014/15 crash, making it different.
It’s likely the impacts of this downturn will be here for a while and we need to adapt to operating in a lower oil price environment. So where can the industry make savings? Below we outline 3 cost saving ideas for the oil and gas sector.
- Spend less time offshore
COVID-19 has reduced the number of people offshore and we don’t know when operations will return to normal, but with a slimmed down team safety still remains of paramount importance.
Previous downturns have meant that operators have already looked for ways to create efficiencies, reduce time offshore and reduce the number of people needed for certain operations. Such as smart platform-to-shore communication and reconsidering their drilling project approach. But operators can do more.