Oil and Gas Industry Risk Assessment Archives - Business Intelligence

Tag: Oil and Gas Industry Risk Assessment

oil and gas companies

Major Roadblocks to Achieving Operational Excellence in the Oil and Gas Industry

The current landscape in the oil and gas sector is pressurizing players in the industry to re-evaluate their operations. Furthermore, oil and gas companies are also driven by cost-containment and sustainability challenges.

To deliver and maintain a superior level of operational excellence, it is imperative for oil and gas companies to consider some critical factors including safety, reliability, productivity, and cost optimization. These factors play a crucial role in determining the economic viability of a drilling program in a given set of market conditions. At the same time, the growing level of complexity and scrutiny in the sector is increasingly creating roadblocks for companies in the sector to extract maximum benefits from the available opportunities for revenue growth. Oil and gas companies are also faced with the challenge of altering and realign their operations with the rapidly changing market variables. These factors coupled with a cut-throat market competition are driving a renewed focus on achieving operational excellence among oil and gas operators. In this article, experts at Infiniti Research have listed out some of the key operational excellence challenges facing oil and gas companies and also defines how to avoid them.

Designing and executing an effective strategy requires oil and gas companies to have a clear understanding of the rapid market changes. Want more insights on how we have helped some of our top clients in the oil and gas industry achieve this?

oil and gas companies

Gaining visibility into complex operations

Some of the top oil and gas challenges include challenging work terrains, price volatility, regulatory and compliance requirements, and varying educational skills of employees. For effective cost containment and to ensure better employee performance, it is important for oil and gas companies to attain greater visibility into their operations. Adopting integrated operations can be useful in enhancing reservoir recoverability, optimization of production, and reducing safety risks in the oil and gas industry.

Dependency on third party suppliers

Even some of the biggest oil and companies rely on third party suppliers for specialist equipment and expertise relating to oil and gas supply chain. These oilfield services platforms perform critical business functions for companies in the oil and gas sector. This means that any inefficiency caused by one company can have a devastating effect. Additionally, inconsistency in collaboration and communication can slow down projects, thereby giving rise to increased inefficiency. By leveraging solutions such as cloud-based collaboration platforms, oil and gas companies can share comprehensive planning and forecasting information and also standardize their inventory management.

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Employee onboarding, retention, and training

This is one of the most critical issues facing companies in the oil and gas industry. The market for good talent has become highly competitive, especially due to the growth and demand for talent in oil and gas from emerging economies like India and China. To make it worse, the growing rate of retirement of the industry’s highly experienced employees are adding further pressure. Therefore, it is essential for oil and gas companies to look for ways to retain their skilled labor through robust learning and development opportunities.

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Spearheading Transformation in the Oil and Gas Supply Chain: A Guide for the C-Suite

oil and gasThe growth of oil and gas supply chain companies has been showing a trend of steady decline over the past couple of years. As the supply chain spending by operators has been cut back due to crumbling crude prices, the Oil Field Services and Equipment companies (OFSE) have been losing business. The companies in the oil and gas industry have cut down costs and, in some cases, made changes to their business models to cope up. Here are some strategies that experts at Infiniti envision will change the current state of the oil and gas industry companies and adapt to the changing environment.

Commodity-price fundamentals are challenging in the short term, requiring executive teams to constantly reevaluate mid- to long-term expectations. As a result, companies in the oil and gas industry are confronting significant strategic challenges and complex decisions. Request a free proposal to know more about our solutions and how we can help oil and gas companies formulate sustainable business strategies.


The oil and gas industry is one such sector that has grown exponentially due to soaring prices over the years. However, the current oil and gas industry landscape and the need to cut down prices have come as a big blow for oil and gas companies. The industry has been faced with multiple years of cost inflation, this rising expenditure per barrel, and high break-even levels. Operators are now rediscovering the spirit of efficiency to overcome these challenging times. For instance, independent operators in the US onshore raised production per well while lowering cost per barrel by using improved horizontal drilling techniques, and longer wells with more frac stages, along with super fracking, where drillers pump a lot more sand into their wells. Tactical initiatives such as project postponements, expenditure cuts, and staff reductions were given prime importance, and OFSE firms responded by cutting back on their own service and manufacturing footprint to cope with less activity, lowering their costs for solutions delivered.


Collaboration could prove to be an effective strategy to lower costs and simplify contractor management in the oil and gas industry. Many services and equipment purchases currently are outsourced to several different providers. This often results in complexity and a fragmented supplier base. Multiple OFSE companies are now bringing these services in-house, with integrated offerings reducing coordination costs. This can result in significant cost savings. While some oil and gas companies are developing integrated offers in-house, many also are partnering or merging with others to provide a wider range of services.

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New revenue models

New revenue models have emerged in the oil and gas sector. This includes performance-based contracts that combine equipment and services and participation in project financing. This allows oil and gas companies to give operators more flexibility by reducing their cost base and need for investment during challenging times. Although this results in more capital expenses for OFSE providers, it also can create a more stable income flow.

Investment in new technologies

Investments in modern technologies are helping oil and gas companies to capture new growth and attain sustainability. Today’s low oil prices have created a need for efficiency, which highlights new technologies that can drive efficiencies albeit at a limited investment cost. Many OFSEs now are redesigning equipment using modular designs to drive out inefficiencies and attain maximum cost reduction.

Our solutions can help oil and gas companies to manage uncertainty and improve performance through analysis, insights, and benchmarking. Learn more about our solutions.

Oil and gas industry

A CIO’s Guide to Oil and Gas Industry Trends

Over the past decade, the oil and gas industry has experienced numerous shifts and fluctuations, along with extreme volatility in oil and gas prices. A combination of erratic commodity price fluctuations, ambiguity about the future of fossil fuels, and increasingly contentious trade negotiations around the world are upending traditional supply and demand fundamentals in the oil and gas industry. In this scenario, executives must find new ways to maintain competitiveness and growth. In this blog, experts at Infiniti have identified some of the key trends that oil and gas companies must watch out for. CIOs who understand these oil and gas industry trends can take advantage of them to enable breakout performance that will differentiate them and their organizations in the years ahead.

CIOs must keep a constant watch on the oil and gas industry trends in order to innovate their processes before their counterparts in the market. Request a free proposal to know how Infiniti can help CIOs become agile innovators.

Oil and gas industry trends 2019

oil and gas industry trendsTransparency and automation

Operational transparency is only now beginning to become an industry reality and one of the widely followed oil and gas industry trends. It provides organizations in the oil and gas industry with more visibility into operational performance and also gives them the ability for effective and rapid decision-making. Furthermore, field work is expected to become less hazardous and less expensive. CIOs can expect to see large-scale assets such as offshore oil rigs operate autonomously without any human intervention.

Oil and gas organizations are aggressively moving to programs that redesign the future of work. Get in touch with our experts to know more about the transformations in the sector.

Leveraging digital resources

It is vital for CIOs to strike a balance between leveraging digital resources for better business resilience and supporting on-demand resources and scalable technologies in an effort to make cost structures of the business more scalable. CIOs of companies in the oil and gas industry who want to enhance their business resilience in volatile markets must keep abreast with the newest oil and gas industry trends and identify ways to keep their operating models more responsive.

CIOs as change agents

Bringing digital transformation to full scale in the oil and gas industry could prove to be highly challenging for CIOs’. Some of the key barriers faced include fragmented data management, lack of relevant team skills, and weak coordination across silos. Although embracing change is paramount for success in the long run, CIOs in most oil and gas companies are yet to realize the importance of embracing change. Partnering with HR heads is a great way for CIOs to work on their change leadership competencies.

Product-centric delivery

CIOs of some of the top oil and gas companies in the world have recognized that potential benefits that product-centric approaches can provide in modernizing IT delivery. Its’ scope is rising although the current implementation rate is low. Experts at Infiniti also believe that, at the current rate, by 2020 majority of the companies in the sector would embrace oil and gas industry trends such as product-centric delivery.

Learn more about oil and gas industry trends, opportunities, and challenges.

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