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.

L.E.K. has 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.

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