ME E&R whitepaper 3

Perspectives

Ghost in the machine

Managing scarcity for the future

In this whitepaper, Deloitte Middle East states that as a result of the increase in prominence of oilfield services companies, as well as the dependence of national and international oil companies upon them, the risks which oilfield services companies face have become risks to the whole sector.

Oilfield service companies are everyone’s friends across the oil and gas industry at the moment, and have been for some time. Their popularity and steady increase in status can be traced back to the mega-mergers of the oil and gas sector in the late 1990’s when the cost- cutting drives of post-merger integration outsourced key operations in oil and gas exploration and production, with the promise of future financial benefits.

The result has turned out somewhat differently; an outflow of mid-career talent from the sector has been difficult to replace, and increasing complexity around joint venture operations and their segregation of duties has led to well-publicized operational failures.

As a result of the increase in prominence of oilfield se rvices companies, as well as the dependence of national and international oil companies upon them,  the risks which oilfield services companies face have become risks to the whole sector. This article explores these oilfield services risks and the potential ways of mitigating them.

Ghost in the machine
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