Today, the Titans of the Energy industry continue their steady march forward – having navigated volatile commodity swings and weathered economic downturns – they have historically prevailed. The lower and middle kingdoms of this Global Energy Landscape also face the same situation in this lower price environment:
- What will the landscape look like after this price trough? Or is this the new norm for a while?
- Will our ability to attract capital investment lag if we can’t demonstrate better margins?
- Shall we follow the seemingly immortal industry leaders who charge forward towards operational efficiency?
- Or will we choose the status quo?
Planning for the next conquest
According to a recent PwC survey, nearly 80% of energy CEOs agree that digital technologies are creating value for operation efficiency. Yet so many don’t invest their capital to match their survey answer. Their appetite for investment falls unilaterally with the commodity price.
Forward-thinking leaders realize the opportunity to deliver additional value in a lower-priced environment. Taking additional costs out of the system now enables these industry leaders to better compete against those who told their forces to stand-down.
Perennial victors don’t stop improving. When external forces impact external projects, these victors take opportunities to improve internally. They reposition their resources to execute internal initiatives that will enable more agility, efficiency, and profitability. When they continue their march forward to expand the kingdom, they will do so with more efficient supply chains, optimized drilling programs, process automation, and better insight into information. They will be able to operate more efficiently and deliver better financial outcomes.