Leaner for longer: Are you fit for $50 oil?

Managing through the downturn

PwC's Fit for $50 oil concept focuses on how energy companies should plan, deploy and operate in a weak hydrocarbon price environment. As prices continue to fluctuate, we've adjusted our motto to "Leaner for Longer," but our line of thinking remains the same. Our approach uses a systematic methodology to rapidly capture opportunities and realign the business to the new price paradigm while protecting growth potential.


In a market that rewards foresight and agility, successfully realigning the business model in the new oil price environment requires a multi-functional approach.


How PwC can help

One of the world's largest professional services networks, PwC’s Energy team serves over 2,500 oil and gas clients of all sizes, from every segment of their businesses. More than 6,000 energy and mining professionals worldwide, with more than 1,300 in the United States, are committed to delivering quality in assurance, tax and advisory services. Wherever you operate, our professionals are ready to assist with many of the largest, most challenging issues.

 

The situation

The precipitous drop in oil price is exposing inefficiencies hidden by capital inflows and the focus on production growth. This type of rapid change often defines companies both in the near and long term.

The inability to effectively transform their organizations leaves many companies lagging their peers, while the slash-and-burn mentality often returns sub-optimal results and stunts future growth.

Transforming the business model requires a rapid yet systematic approach.

 

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Our approach

A systematic approach expedites the implementation of quick wins while developing a road map to create a redesigned business model that delivers sustainable value.

Our approach is tailored to incorporate the efforts that are already underway, while identifying additional opportunities. Through this process we accelerate and maximize benefit realization, while creating a model that is sustainable.

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The stress test

Segment the business and stress test it to understand the relative expected value contribution and optimal strategic, financial and operational opportunities.

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Portfolio analysis

Analysis of the portfolio objectively identifies improvement opportunities to asset performance, alignment and mix.

 

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Cost reductions

Cost reduction is about:

  • understanding what things should cost
  • identifying the levers that should be pulled to reduce costs
  • rationalizing the activities that drive cost
  • restructuring the organization to drive future growth.

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Contact us

Reid Morrison
Global Energy Advisory Leader, PwC US
Tel: +1 (713) 356 4132
Email

Ryan Hawk
Principal, Operations
Tel: +1 (312) 298 3319
Email

Alex Vanags
Principal, Strategy&
Tel: +1 (713) 356 8741
Email

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