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

Volume XVIII, Issue 20
June 3, 2016
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Summary

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.

 

http://cdn.lek.com/sites/default/files/Survival_of_the_Fittest_How_to_Thrive_in_a_World_of_Low_Oil_Prices_Peter_Debenham_Jeremy_Wheatland.pdf