Enhanced Profit Recovery Series

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A playbook for oil and gas in 2018 and beyond

When oil prices fell four years ago, oil and gas producers worked frantically to lower their costs to cope with what many assumed would be a short-term drop. Four years later, prices are still a long way off their highs, but with oil back up to $60 a barrel, most firms have a bit more breathing room.

Lease operating expense

Many companies have other untapped opportunities to increase their efficiency as well, such as right-sizing parts inventory. PwC’s experience is that this kind of optimization alone can reduce inventory by as much as 25%. In addition, the digital revolution has brought us predictive analytics, making it easier to maintain equipment on a proactive basis to decrease downtime and avoid the unnecessary costs.

Production

Although 2018 looks like it’s shaping up to be a good year, producers face a lot of uncertainty on any number of fronts. This might prove to be an ordinary recovery, but in an industry famous for extraordinary booms and busts, smart firms won’t be taking anything for granted. In this series, however, we will look only at sure things – those levers over which you have a lot of control – that you can use to lock in a lower cost per barrel permanently.

Contact us

Mike Scheller

Principal, PwC US

Sarah Rodriguez

Principal, PwC US

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