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A New Reality for Oil and Gas Procurement and Supply Chains
Article

A New Reality for Oil and Gas Procurement and Supply Chains



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8

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COVID-19 has affected most industries  – some for the better, many for the worse. The oil industry is no exception. Oilfield services and equipment (OFSE) suppliers, in particular, are up against the ropes. To determine survival strategies for OFSE suppliers, the Boston Consulting Group analyzed the finances of 200 OFSE suppliers, surveyed 125 senior managers and interviewed 30+ CEOs. They detail their findings in this special report, which describes the steps needed – strategic partnerships, value creation and supply chain balancing – to help OFSE suppliers pull through the crisis.

Take-Aways

  • In response to oil price declines, oil and gas operators are pressuring struggling oilfield services and equipment (OFSE) providers to cut prices.
  • Oil and gas operators will need to commit to enhanced relationships with their OFSE suppliers, but only after a more stringent vetting process.
  • OFSE suppliers require support from oil and gas operators to survive in the short-term, but enhanced partnerships will benefit both suppliers and operators in the medium and long-term.

About the Authors

Alex Dolya (Singapore), Kirill Eremenko (London), Marco Tonegutti (Milan), Eric Oudenot (Paris), Harish Hemmige (Washington DC), Joel Kwong (Kuala Lumpur) and Li Yan (Singapore) collaborated to create this special Boston Consulting Group report.