Oil and gas

Drilling deep for answers, delivering results right from the start

Are you ready for the energy transition?

As the world seeks more low-carbon energy sources and as the electrification of energy is growing, leaders in the oil and gas sector have some big strategic decisions to make. Will you include non-traditional enterprises in your business portfolio and, if so, which ones? Amid the digital transformation, will you align with players outside the traditional market? How will you incorporate artificial intelligence and robotics into your global operations?

At Strategy&, we bring solutions to governments, international oil companies, national oil companies, and oil services providers around the world. We help forge a path powerful enough to breakthrough in the face of uncertainty; a path that’s built on what you do best, so you stay agile enough to control and define your future. This is strategy, made real.

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Oil and gas trends 2019

Building growth strategies on shifting sands

Oil and gas companies are confronting a turning point, one that requires strong decisions about their strategies for surviving and thriving in uncertain times.

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How we help clients

Business strategy

We bring the strategic capabilities and global scale to help our clients understand and pursue the most relevant opportunities and markets created by new technologies such as AI, blockchain, virtual reality, IoT, and cloud computing. Together, we can help you build a focused portfolio of companies, technologies, and capabilities system to achieve a lasting competitive advantage in the ever-evolving tech landscape.

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Fit for Growth

Using our time-tested framework, we help oil and gas companies achieve sustainable growth by becoming more efficient and by divesting (or reducing investment in) non-core capabilities. We can advise on redesigning operating models, optimising overheads, improving procurement capabilities, enhancing supply chains, and enabling digital transformation.

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Digital strategy

Together with our Experience Center, we help clients establish a clear, actionable, and quantified perspective on how they should develop digital capabilities to enhance customer intimacy, build innovative products and services, and digitize their processes and relations for greater effectiveness. We then create road maps that detail the business requirements to realise value from these new digital opportunities.

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Deals strategy

Our proven industry expertise and functional experience mean you get trusted support during all phases of deal making. Our clients get hands-on guidance during portfolio strategy and valuation; strategic target, partner, and buyer identification and assessment; strategic, commercial, and operating model due diligence (buy and sell side); and deal value realisation for M&A, divestitures, joint ventures, and strategic partnerships.

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Megaprojects

Whether you’re managing multiple projects as a core part of your business or you only execute a megaproject once in a decade and need a one-off capability boost, we can help. We’re known for our collaborative nature and willingness to challenge conventional thinking, strategically improving the outcomes for megaprojects being delivered safely, on-time, on budget, and with the highest quality.

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Impact

Designing a digital strategy for a European E&P company

A leading European exploration and production company retained Strategy& to help it assess the latest trends in digital, identify implications for its business, and develop a digital implementation strategy. Strategy& evaluated the status of ongoing digital initiatives, and conducted workshops across all major disciplines to present and discuss insights from oil and gas and other industries. We then identified the business challenges to be addressed through digital applications. Finally, we helped the client define a digital vision aligned to corporate strategy, and to prioritise, design, and implement pilot projects.

 

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Providing strategic due diligence of an oilfield services merger

A major investment company engaged Strategy& to review the strategic rationale and market outlook for a proposed investment in a new oilfield services company formed through the merger of two existing companies. We addressed major strategic questions around the attractiveness of the investment target, the feasibility of future growth targets, and potential synergies with other investments within the client portfolio. We then helped the client articulate an investment strategy, and identified the key issues to be negotiated with the target, resulting in a successful investment in a company with a market capitalisation of more than $1 billion.

 

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Procuring savings for a European E&P company

Strategy& worked with a leading European E&P company to identify opportunities for cost savings related to its procurement function. We conducted workshops with procurement function and technical disciplines to present current trends in E&P procurement, and identify cost-cutting opportunities. We took a holistic approach covering procurement, category and contracting strategies, and contract management, ultimately supporting the client to define actions with the potential for up to $100 million in savings.

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Improving upstream performance

One of the world’s largest national oil companies retained Strategy& to help identify performance improvement opportunities across the spectrum of upstream operations. We  conducted an in-depth review of exploration, well delivery, reservoir management, major projects, procurement, and human resource processes — all while referring to leading industry practices and identifying root causes for performance shortfalls. We then developed charters and improvement plans for individual functions, and for major cross-cutting initiatives around planning for and strengthening a culture of collaboration.

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Planning for value-chain optimisation

Strategy& was retained by a large national oil company to help improve its planning function, and to develop models and processes for the optimisation of upstream and downstream operations. We designed a new strategy and timeline for the capture of consistent planning data, facilitating greater insight into portfolio performance and key value drivers. We built an end-to-end model of company hydrocarbon flows, including all costs and proposed investments. The client used this model to identify inconsistencies in plans, and to evaluate the value impact of alternative investment scenarios, highlighting potential value creation opportunities exceeding $1 billion.

 

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Advising an oil and gas ministry on reform in the gas sector

Strategy& was retained by the oil and gas ministry of a major producing company to evaluate the performance of the gas sector, and identify reforms required to ensure efficient working of the sector. We first reviewed the structure and development of a wide-range of gas sectors, identifying key steps in their evolution and critical success factors in the implementation of reforms. We then conducted workshops with key stakeholders to discuss and align on reform options. Finally, we presented a comprehensive roadmap and charters for the required studies and actions to implement reforms.

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Contact us

Al Kent

Principal, Strategy& US

Varya Davidson

Partner, Australia

Timothy Jackson

Partner, Strategy& Australia

Georges Chehade

Partner, Strategy& Middle East

George Sarraf

Managing Director, Strategy& Middle East

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