The unprecedented financial maelstrom that hit the Canadian oil patch in late 2008 and 2009 wreaked havoc on many energy companies. The worldwide recession led to tighter credit conditions for producers, with oil sands operators particularly hard hit as many projects were put on the shelf due to lack of credit. Added to the mix of bad news was a sundry list of ongoing issues that led to declining profit margins and increased costs: ageing assets in need of attention or refurbishment, as well as the tangle of red tape associated with regulatory and environmental compliance.
The economic downturn in forced energy companies to examine and make changes to their operational models. At a time when credit was tight, companies were unable to “throw money” to fix problems with operations. Organizations have also come to realize the “slash-and-burn” approach to downturns is short-sighted and unsustainable. Instead, they must use an integrated approach to achieve long-term financial growth (i.e. focus on financial and operational performance).
The 2009 Energy Visions Q3 Update looks in more detail at how energy companies can improve the bottom line by taking an end-to-end view of the entire business — including operations, supply chain, asset maintenance/optimization and back office functions.