Oil And Gas Firms Need To Learn From Other Industries
Many experienced people in the industry have cautioned oil and gas firms against adopting short-term tactical cuts. Oil and gas firms should ideally retain workers in key positions like contract engineering jobs. They should look up to other industries who have been through difficult times. Following in their footsteps, oil and gas companies should ideally plan long-term structural changes. These changes will allow them to achieve improved efficiency in operations and keep their business running, in spite of low oil prices.
According to a news article:
“A report on the future of the industry says firms should follow the example set by the automotive, aerospace, rail and chemical industries, which have all weathered challenging times… It warns firms against making short-term tactical cuts rather than focusing on longer-term structural changes to achieve the 30% to 40% improvement in efficiency recommended by regulator the Oil and Gas Authority (OGA).”
Many Companies Learning From Their Past Experiences
Some oil and gas exploration and production companies are learning from their past experiences, when dealing with low oil prices. They have realized that laying off workers is not the solution. This is because they found the going tough when oil prices rose again, as they did not have the required labour.
Jennifer Hiller said in a recent article:
“A Chicago-based outplacement firm said exploration and production companies may be wary of cutting too deeply, so they retain skilled workers and in-house expertise when oil demand and prices rebound.
Some oil industry executives have admitted to being scarred from past down cycles, when they laid off too many workers and struggled to take advantage of climbing demand later.”
This article shares some practical advice for oil and gas firms so that they weather the rough times and come out of it stronger.