The drive for increased efficiency
The negative effects of the Oil & Gas downturn continue to be evident – but more positively, we are also experiencing the need and the benefit of becoming much more efficient in managing and running all aspects of our businesses in the industry.
Economic recovery efforts have gained momentum. We have seen average lifting costs per barrel of oil gradually fall amongst theExploration & Production (E&P) operators and green shoots of greater collaboration are starting to appear across the industry. Crucially, in the E&P sector as well as in Oil Services, we also see the need for more efficiencies, higher productivity, increased innovation and technological improvement in what will be the next all improved chapter of our industry.
Leaner businesses are now more prepared and ready to maximise opportunities in a lower for longer but stabilised oil price market. What’s more, with more deal activity happening already in the first months of 2017, we may also be starting to see the beginning of a new phase of consolidation.
It may be true that we will never see a return to the boom days of $100+ oil. However, the reality is that through necessary change, adaptation and survival, what has emerged is an improved industry and a more efficient business environment that will present exciting challenges and huge rewards for many years to come.
Specialist services that increase efficiencies
AAB has experienced a period of substantial growth in the North Sea and international E&P sector. Organisations continue to review their cost models and work in greater collaboration on joint venture projects, and so demand has been particularly high for our joint venture and contract audit services. The firm now works with over 50 E&P clients in more than 20 countries and has a team of more than 30 E&P experts across their suite of specialist services.
AAB provides an extensive offering to E&P companies which can add considerable value in driving down costs and creating more effective and strategic business models.
Services range from joint venture and contract audits to outsourced accounting, global payroll and mobility services, corporate benefits, management consulting and tax structuring in addition to private client and wealth management advice to individuals working within E&P companies.