Oil And Gas Companies Are Trying To Become More Efficient

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In the light of the slump in global crude oil prices, many oil and gas companies are trying to become more efficient in their operations. They are cutting down on expenses and focusing on improving productivity by maximising their existing resources. This article explains about the steps that oil and gas companies are taking to tide through the rough time in the current economic scenario.

Oil And Gas Companies Focus On Cutting Capital Expenditure

A recent survey conducted by a HR consulting firm Mercer has revealed that a majority of oil and gas companies intend to cut capital expenditures. Recruitment for oil refinery jobs has reduced and will continue to see a decline in the next few months. While some oil and gas companies are considering a cut in salaries, others are restructuring their staff.

Brian Lindenberg said in a recent article:

“In the midst of this recent downturn, global HR consulting firm Mercer conducted a survey of more than 150 oil and gas companies with operations in Canada, the U.S. and Mexico. The results are quite telling, with nearly one-half of respondents intending to cut capital expenditures as a result of declining oil prices. When it comes to talent and people strategies, nearly one-third are reducing efforts to bring new talent into their companies, while some are considering freezing or cutting compensation, or even restructuring staff and operations.”

Oil And Gas Companies Are Looking At Creative Ways To Avoid Layoffs

Recognizing the need to retain their skilled workforce, oil and gas companies are looking at creative ways to boost productivity, without laying off workers. The companies are reducing compensation of existing oil and gas workers to tide through the rough times, until oil prices begin to stabilize.

Ian Bickis said in a recent article:

“Howes says oil and gas companies are increasingly looking at creative ways to avoid cutting staff including job sharing, shorter work weeks and reduced pay.

“Companies are really trying to balance that long-term objective of maintaining workforces and the short-term reduction in oil prices,” she said.”

Layoffs are not a sustainable solution as oil and gas companies will require skilled talent to manage their operations when the oil prices pick up.

This article explains about how oil and gas companies are trying to become more efficient to tide through the difficult times, given the low crude oil prices around the globe.