Covid 19 and the energy transition – a perfect storm for oil service companies?

Mar 25 2021

This recent oil report by the IEA indicates that in 2020 the majors slashed their upstream capex by 30%. Glboal capital expenditure fell to its lowest level since 2006 and according to the OGA will fall below £9 billion by 2025 in the UK, about half of the 2016 level. At the same time there has been further pressure on pricing in the sector supply chain.

Businesses servicing the oil sector cannot afford to ignore the impact of the energy transition as they plan their way out of the turmoil of 2020. Companies need to actively consider where their future lies - Should they remain focused on Oil and Gas, or switch to the opportunities available in the rapidly expanding renewables sector? Or should they transfer their skills, experience and resources to completely different sectors? Is some form of hybrid business a viable option?

We have been pondering this issue for a while and are about to release a white paper on this subject – in the meantime contact Collcutt Associates for discussion of your current situation and how we can help you identify a way forward for your business.

#collcuttassociates #energytransition #managementconsulting#businessplanning

https://www.iea.org/reports/oil-2021