Energy Executives Forced to Adapt

Energy Execs Change Strategy to Stay Competitive
Energy Execs Change Strategy to Stay Competitive

In these uncertain times, energy companies are getting creative in order to stay profitable and competitive, according to a recent survey by KPMG Global Energy Institute.

Related: Company Experiments to Increase Efficiency

The firm found that 56% of the 200 senior executives polled plan to change their business model over the next two years to deal with the fluctuations and uncertainty.

KPMG’s Regina Mayor said “Companies are taking necessary actions to drive improved near- and long-term performance and identify areas of greater efficiency to adapt to market pressures and remain competitive in this environment.

The executives indicated that they will focus on managing costs through by:

  1. Better management of staffing or outsourcing
  2. Improved planning and budgeting management tools
  3. Changing service delivery models
  4. Optimizing costs related to inventory and repairs

Tightening the belt doesn't necessarily mean more layoffs, however. Over the next two years, the majority of the oil and gas executives (76%) expect to see their organizations’ ranks to  increase or stay the same over the next two years.

This data shows that even in today’s challenging price environment, short-term staffing cuts are not as pervasive as headlines may indicate, and perhaps there is more job opportunity across the broader energy market,” said Mayor. “It’s not all doom and gloom in the oil sector; the companies that employ a variety of actions around supply chain, cost optimization and a well-designed core operating model that will come out of this downturn with a successful future.

Read more at kpmg.com