Survival of the Fittest: How to Thrive in a World of Low Oil Prices

Volume XVIII, Issue 20
June 3, 2016
Sample Visuals

It may not feel like it, but amid the continuing slump in the price of oil, companies servicing the oil and gas industry have a golden opportunity to enhance their competitive position and maximize their advantage when the price recovery occurs.

L.E.K. estimates that there is an 18-month window for companies to put in place the measures needed to reshape their business and prepare for growth. But the time to act is now – because when the cycle turns, it will be too late.

London Partners Peter Debenham and Jeremy Wheatland have developed a three-part strategy to address both the challenges and the opportunities of a world in which lower oil prices are the norm:

  1. Reduce the cost base
  2. Improve operational performance
  3. Reconfigure the business model

The oil price will recover to higher levels, and when it does the best-placed companies will be those that have used the window of opportunity to become leaner, fitter and better adapted to the new post slump environment.