White Paper: Strategies for oil service companies in the Energy Transition

Apr 1 2021

Oil service companies have been in turbulent times since the oil price collapse of 2015, the effects of which were starting to recede when the industry was hit by the impact of covid-19. To further compound these challenges the sector is now also having to consider the potential implications of the energy transition. The impact is already being felt, particularly in European markets, and it is clear that there will be very significant longer-term changes throughout the whole hydrocarbon industry in the coming decades. Not all regions will be affected in the same way or over the same timescale but service companies, and particularly those based in the UK, are rapidly approaching the point at which strategic choices will need to be made. Companies need to actively consider where their future lies.

Should they remain focused on the Oil and Gas sector, or switch to the opportunities available in the rapidly expanding renewables market? Or should they aim to apply their skills and experience to other sectors outside the Energy sector? Perhaps they should aim for a business mix that is some hybrid of the different alternatives – but is this a viable option? If the company chooses to change from its current focus, how quickly does it need to do so?

In order to assess and make these choices there are a number of internal and external factors to be evaluated. These relate to the objectives of the business, core competencies, potential alternative markets, culture and values, commercial structure and risk appetite, brand strength and positioning and the ability to create investor and staff propositions. Structured consideration of these issues is essential to enable the organisation to make and implement the best choices for its own circumstances and meet the requirements of its shareholders.

Download our white paper below....