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Exploration and Production Supplier Contracts: Where Does All the Value Go?

Here are the crucial sources of value leakage at the intersection of E&P companies and suppliers.

Over the past decade, many exploration and production (E&P) companies have significantly improved their procurement and supply chain management practices—and have achieved material gains in the efficiency of their dealings with suppliers. Many E&P companies believe, however, that there is still much to improve upon. In particular, they suspect that there remains considerable hidden value leakage in their transactions with suppliers. 

A survey of top companies that provide services and equipment to the E&P industry identified 11 distinct sources of value leakage at the interface of E&P companies and suppliers.

Energy & Environment
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