25 April 2024
Lower for longer: Pressure mounts to cut project costs
Publication date: 30 November 2015
Gas Strategies Group
10 Saint Bride Street
London UK
EC4A 4AD
ISSN: 0964-8496
Twitter @GasStrategies
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With no recovery in sight for crude oil prices, the oil and gas industry has been forced to fundamentally reappraise capital expenditure. As the “lower for longer” mantra becomes a clamour, oil and gas companies, major engineering contractors, and the myriad firms that supply them are starting to get a grip. The companies best positioned in today’s market are not those waiting for oil prices to rise but those who believe that profitable business is still possible in a sub-USD 60/barrel world. That means an urgent new emphasis on reducing costs, especially the capex required to bring new supply projects on stream. In the first of a two-part series, Gas Matters examines how the industry is responding to its biggest shock in years.