BCG's Oil&Gas Practice. E&P Supplier Contacts: Where Does All the Value Go? Strategic Alliances in Upstream Oil&Gas: Getting Serious About Collaboration

Jake Leslie Melville Philip Whittaker Pauwel Wiertsema Stuart Groves

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 players believe, however, that they still have much further to go. In particular they suspect that there remains considerable hidden “value leakage” in their transactions with suppliers. What is more difficult to identify is where, precisely, the problems lie and to what extent they are resolvable.