ACCELERATING THE REINVENTION JOURNEY IN OIL AND GAS
Most oil and gas companies realize the need to transform to achieve profitability and stay relevant during and after the energy transition. Yet, many still struggle to understand what transformation will mean to their business.
Our inaugural Oil and Gas Reinvention Index research suggests that transformation will not be enough. Reinvention is needed. And that reinvention must be anchored in five core areas. Our research bears this out. Survey findings show that oil and gas companies most committed to reinvention expect their actions to help them grow margins by at least 7% and revenues by at least 11% in the next three years.
We believe reinvention across these five dimensions will distinguish the industry leaders in the years ahead and potentially unlock up to $500 billion in value annually for the industry.
STANDARD SECTORS IN THE OIL AND GAS INDUSTRY
Oil & Gas activities can be classified under three (3) main categories, namely upstream, midstream and infrastructure and downstream. Below are some examples of what are the scope of activities involved under each of the foregoing categories.
UPSTREAM OIL & GAS
Exploration and Production
- Study and explore composition, structure and other physical aspects of rock formations associated with oil or natural gas deposits through geophysical prospecting and/or exploratory drilling. Construct wells if an economically feasible field is located.
- Execute drilling and servicing of oil and gas well. Activities include managing manpower, rigs, material supply and stocks to ensure difficulties onsite are resolved to avoid delay in drilling process.
- Involves the operation of control system and equipment related to plant and facilities. This includes setting up, taking down, servicing the equipment and general clean-up of both onshore and offshore oil rig areas.
MIDSTREAM AND INFRASTRUCTURE
Transportation and Storage Manage the movement of crude oil from oil fields to refineries and/or to storage areas, where the products are stored for distribution and for emergency reserves. Crude oil is transported by two primary modes tanker and pipelines.
DOWNSTREAM OIL & GAS
Refining, Distribution Trading & Marketing
- Skilled personnel are required to ensure that oil refineries maintain its production level and simply keep the refinery running.
- Distribution of utilities, oil products wholesalers, petrol service stations and petrochemical companies are all part of this downstream sector. This sector of the industry is responsible to deliver oil product and ensure product quality meets stringent specifications.
- Track industry market movements through monitoring and collecting data on oil asset in the world markets. Coordinate buyers and conduct trade with relevant parties agreeing to the product price.