What we’re also seeing in North America is that when the bust occurs, the companies that are not well run and efficient are going out of business. This compression is creating a lot of new challenges and dynamics that oil and gas companies are not used to. Today those cycles are compressed into a three-to- four-year cycle. Historically we may have had a ten-to-fifteen-year cycle between a boom and a bust. However, what we’re seeing now is a compression of those cycles. Sean Barnes, Nine Energy Service: If you take a macro look at oil and commodity prices over numerous decades, there has always been a boom-and-bust cycle in oil and gas. What are the big challenges that such high price volatility poses to oil and gas operations? And there are fears that a major recession is looming that will drive prices down again. Up after the Russian invasion of Ukraine. In this interview, Barnes discusses the impact of market volatility on oil and gas operations, the ongoing labor challenges in the industry, and what it means to find the just right “goldilocks” zone for operational excellence in oil and gas companies.ĭiana Davis, Oil and Gas IQ: The price of oil is going up and down a bit like a yo-yo these days. He says that the periods between booms and busts is the time you need to make small and rapid improvements and get them solidified before the next big market change. You’ve got to find the Goldilocks zone, according to Sean Barnes, VP, Corporate Operations, at Nine Energy Service. Operational excellence requires a degree of stability to understand processes and identify ways to improve them.īut how do you improve processes and maintain the gains when the macroeconomic climate is constantly changing how you operate?
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