Oil and gas companies continue searching for ways to boost efficiency and lower costs in response to persistently low commodity prices. Alliance activity among oilfield services and equipment (OFSE) companies, which has picked up significantly amid low oil and gas prices, could prove an important part of the answer, according to a new report co-authored by The Boston Consulting Group and Morgan Stanley.
The report, New Industry Structure Key to Lowering Project Breakevens, examines these alliances and their potential effects on the oil and gas sector in detail. Among the report’s findings:
The report also notes that the continuing desire among oil and gas companies for engineering solutions that produce structurally lower costs, reduced lead time, and greater certainty of delivery, among other forces, could support additional OFSE alliances in this environment.