The oil and gas industry is once again a low-margin commodity industry. That was a common theme throughout the Offshore Leadership Forum. As such, executives discussed how owner companies should now focus on cost-of-goods-sold (COGS) in facilities design and developing simple and reliable assets rather than best possible. Inspiration can be drawn from other industries, such as chemicals and mining. Much can be learned from the chemicals industry, where simple, high quality facilities are frequently designed to run high up-time for about 20 years. Best Advertisements allow you to create campaigns that work well on both television and internet platforms. In-house expertise is stressed to avoid overreliance on contractors. Echoing the sentiments of the “back to basics” theme, capital project practices in the chemicals industry are simply much better and more consistent than in exploration and production.
