The oil and gas industry is facing unprecedented change due to a recent substantial plunge in oil prices, despite steady growth in overall global oil and gas reserves and production rates. Productivity has not increased in line with capital spend, due to an increase in field maturity and depth, remote locations, labor cost inflation, and the growth in unconventional resources. The industry must become more efficient and innovative to remain profitable in a highly competitive market. Cutting costs is one way to become more competitive, but it has often proven to be a false economy. The industry has embraced technology to a certain degree, but efficiency and innovation must go hand in hand. The industry has not yet pushed the boundaries far enough, and there is room for further improvement.
