twitter linkedinfacebookacp contact us

Middle East petroleum industry in need of “strategic cost transformation”

A.T. Kearney, a management consulting firm, will share important regional insights and offer a global outlook at ADIPEC 2016

According to global management consulting firm A.T. Kearney, the Middle East petroleum industry must take a strategic approach to cost transformation in order to maintain a competitive place in today’s challenging oil economy.  

Fluctuating oil prices have made it critical for businesses to make a ‘step change’ in their operating models to remain agile and resilient amid ongoing market variability, said Richard Forrest, Global Lead Partner of A.T. Kearney’s Energy and Process Industries Practice. 

Speaking at a recent Al Multaqa networking event held exclusively for members of the Middle East Petroleum Club (MEPC), a prestigious oil and gas industry membership club initiated by the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), Forrest said the oil price outlook requires a structural response from both national and international oil companies. 

“The current oil price outlook requires all companies to take a hard look at costs. Oil companies need to prepare for a future with continued market uncertainty – it requires a structural change from across the industry,” said Forrest, who will also be speaking at ADIPEC in November. “Strategic cost transformation goes beyond today’s traditional response of delaying projects and renegotiating with suppliers.”

“We are at a critical point in time where oil companies globally need to reflect and act on the oil market outlook,” said Forrest. “Industry leaders will look to implement the next wave of comprehensive strategic cost transformation. They will consider how to optimise their portfolio, reduce costs across the value chain collaborating with suppliers and other operators, reshape their operating models, and explore how best to leverage the abundance of M&A opportunities in the market.”

Forrest will share his insights during a panel discussion on operational excellence at ADIPEC’s exclusive VIP Programme, which invites industry officials, experts, and decision makers to engage in open dialogue with MEPC members in the controlled privacy of the club. 

Established as the world’s most influential exhibition and conference for the oil and gas industry, ADIPEC has a longstanding track record of bringing together globally celebrated luminaries and experts to discuss challenges and opportunities in the energy sector. The annual four-day event will take place from 7-10 November 2016 at the Abu Dhabi National Exhibition Centre.

The oil and gas industry has been increasingly adopting AI technology in recent years, and this trend is expected to continue in the coming years. (Image source: Adobe Stock)

SmartMaster can be used with a range of ABB and third-party instruments. (Image source: ABB)

Comparison of conventional workflow with DUG MP-FWI imaging. (Image source: DUG)

The expansion is expected to increase the plant’s processing capacity from 2.5 to up to 4 billion standard cubic feet per day (bscfd). (Image source: Aramco)

Oman LNG signed various agreements with Shell Gas to secure its gas supply until 2034. (Image source: Adobe Stock)

ARO Drilling and IMI announce first Kingdom jack up rig (Image source: ARO)

GAC Saudi Arabia has extensive operations at major ports in Saudi Arabia. (Image source: GAC Saudi Arabia)

Michael Monica, director sales, marketing and customer care at GPT Industries signs the agreement with Mohamed Altaf, sale manager, Abdulla Fouad Energy Services. (Image source: Alain Charles Publishing)

Amin H. Nasser, CEO of Aramco. (Image source: Aramco)

The system can activate notification and hazard mitigation equipment to notify workers and safeguard facilities. (Image source: MSA Safety)

The new discoveries will bolster Aramco’s strategy to increase gas production by more than half over 2021 levels, through 2030. (Image source: Adobe Stock)

The use of blockchain in the oil and gas sector is set to increase substantially. (Image source: Adobe Stock)

The new technology is designed to address the challenging conditions in unconventional wells. (Image source: Adobe Stock)

Source: SafeStart

The Ampelmann A-type enabling safe offshore access in the Middle East. (Image source: Ampelmann)

Aramco has produced the first unconventional tight gas from its South Ghawar operational area ahead of schedule. (Image source: Adobe Stock)

Gaurav Khupsare, Director, MACS-G Solutions. (Image source: Alain Charles Publishing)

Tethys Oil is currently conducting final preparations ahead of the rig mobilisation for the drilling of the first exploration well on Block 58, Kunooz-1 in Fahd.

TotalEnergies and SONATRACH will develop gas resources in Algeria's north-east Timimoun region, (Image source: Adobe Stock).

By using analytics to augment and empower the workforce, pipeline operators can optimise operations and improve asset availability. (Image source: Adobe Stock)

The oil price is hovering around the US$90/bbl mark. (Image source: Adobe Stock)

The Craig International Qatar team. (Image source: Craig International)

The SuperFill II diverter reduces induced surge pressure. (Image source: Halliburton)

Among other services, KBR will offer proprietary equipment for NCIC's 1,200 metric tonnes per day ammonia plant. (Image source: Adobe Stock)

The expansion is expected to increase the plant’s processing capacity from 2.5 to up to 4 billion standard cubic feet per day (bscfd). (Image source: Aramco)

Comparison of conventional workflow with DUG MP-FWI imaging. (Image source: DUG)

ADNOC Gas recorded robust financial and operational results in 2023. (Image source: Adobe Stock)

Over 4,000 km of SoluForce pipe has been installed around the world. (Image source: SoluForce)

Block 56 is targeted for commercialisation in 2024. (Image source: Canva)

The programme will optimise asset lifecycle, enhance machinery performance and improve overall reliability. (Image source: Adobe Stock)

The use of blockchain in the oil and gas sector is set to increase substantially. (Image source: Adobe Stock)

Source: SafeStart

GAC Saudi Arabia has extensive operations at major ports in Saudi Arabia. (Image source: GAC Saudi Arabia)

The company is well positioned in 2024, with a reshaped and resilient business and a strong balance sheet. (Image source: Adobe Stock)

The vessel addresses the growing demand for accurate hydrographic data. (Image source: Fugro)

The virtual inhouse seismic processing centre will allow each of the decentralised business units of Wintershall Dea globally to collaborate efficiently and directly with DUG. (Image source: Adobe Stock)