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.
- Reduce the cost base
- Improve operational performance
- 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.