Shared incentives create OPEX savings in oil & gas

The oil & gas industry has gone through a major transformation after the oil price crashed in 2014. Even though the oil price is now on the way up, the downturn has left some permanent marks on the industry. Significant work has gone into reducing the lifting cost per barrel from the oil company side. This has been done by reducing costs, but also by applying new ways of working and new solutions. Cost reductions have also been evident to drilling contractors (as well as other contractors), as they have seen their top line come down by 50% and experienced lower activity level in general. 

Contents

1. Brent Crude oil price & Lifting cost development
2. In an industry where risk and cost are transferred downwards in the supply chain, how can Wärtsilä continue to be a relevant vendor?
3. Response time is of the essence