Summary
The recent steep drop in oil prices has been making waves throughout the industry – most notably, an increased focus on cost control, efficiency improvement and supplier consolidation. A more challenging energy environment is squeezing weaker companies and compelling stronger ones to rethink their strategies.
However, concerns about the industry slowdown and consolidation are overshadowed by broader issues around increasing regulatory pressures and inefficient water management, according to L.E.K.’s second annual oil and gas study. In this Executive Insights, Chris Kenney and Marc Chernoff examine these issues and provide key takeaways and investment implications for decision makers to consider.
The shale boom is over and the industry has entered a period of consolidation, encouraging companies to increase their investments in both emissions and water management. In this tougher environment, it’s more important than ever for companies to develop a long-term strategy to capitalize on lucrative and intriguing opportunities that still exist.
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