In an overcrowded marketplace, services firms must innovate to survive
Services firms have been hit hard by the recent oil price collapse. With many international oil companies struggling to fulfil shareholder obligations while margins shrink, service providers are at the sharp end. They are being squeezed ever tighter on price, while the number of companies vying for a decreasing number of projects has seen competition in the market go into overdrive.
Unsurprisingly perhaps, innovation is the buzzword of the day as producers seek to minimise the per-barrel cost of production from late life assets. While operations staff are struggling to do more (or at least the same) with less staff, innovative technologies and approaches have an important role to play in determining the future of mature basins.
Our industrial software apps remove paper, error and delay for a wide range of user groups across the oil and gas supply chain. Logistics personnel can use our mobile apps, barcodes and RFID to tag, transfer and back-load equipment to and from facilities. Off-shore technicians can use our mobile apps, running on intrinsically safe Android devices, to plan, execute and report on equipment inspections and maintenance. Planners and management can see work-in-progress in real-time and can use the picture and video sharing capabilities of our mobile platform to provide expert support on-line when required.
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Replacing manual processes with real-time mobile apps significantly increases productivity (both on and off-shore) and increases your service offering to operators. Proving that you have solutions to rapidly cut costs is a key differentiator.
This approach makes innovative services firms stand out from the crowd and amid ongoing bearish market sentiment and an overcrowded services sector; it is most definitely a case of ‘differentiate to win’.
In order for the economics of late life oil and gas production to make sense, the entire industry supply chain must quickly transform productivity and embrace a ‘survival of the fastest’ mentality that current conditions demand.