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WHERE TO GO IN THE NEXT TEN YEARS

Over the past two years, the long-term downturn in oil prices has brought a heavy blow to the oil and gas industry, while several British oil and gas companies were injured most. According to a recent report of EY, the oil and gas industry began to show signs of recovery. What’s more, the oil industry began to strategic deployment of supply chain again. In the face of severe economic challenges, how do the companies survive? Relevant people give the following suggestions.   

 

Explore a new profit model: focus on long-term benefits   

Due to the struggling market environment, it is difficult for the oil service companies to get profit. Therefore more efficient and preferred way of innovation is essential, even if oil prices began to recover, high efficiency and technological innovation is the only way toward sustainable development.          

 

Perhaps in the near future, the price of refined oil is no different with the current oil, so oil service companies must reduce costs as far as possible. Improve business profits will be achieved through new business relationships and technology innovation.

 

Innovative technology to expand markets

At present, low oil prices have become the new normal in the oil field, and the oil has begun to convert its mode from the short-term survival into focusing on long-term development.

Nowadays, a host of domestic oilfield has started the "three steps" to promote the oil core technology standardization, tangible and industrialization, and step on the road of technology to lead the market, innovation to create demand and technology to set brand.

 

Enterprise integration and strategic alliance

According to the report, in 2017, corporate mergers and strategic alliances will show an upward trend, especially in the development of high cost operations such as offshore platforms.

At this stage, the oil and gas companies need to re-evaluate the supply chain, purchasing strategy and procurement costs, because this is a matter of life and death about oil companies.

For supply chain enterprises in the oil industry, high investment, high risk, and high return determine the industry is a high threshold-industry. Therefore, through technological innovation and industrial upgrading to reduce costs and control risk in order to obtain high returns. For small oil companies, it is like dancing on the tip of the knife, while for large companies like a tug of war on the cliff.

Topland, as an important platform between manufactures and clients, is looking forward to establish a solid foundation with all partners in the oilfield. Applying the latest technology with high efficiency, reasonable cost, and labor saving are the indispensable action --- future prosperity.