Saudi Aramco: The Future of Oil and Gas - GineersNow Petroleum Saudi Aramco, The Future of Oil & Gas Industry | Page 23

in specific aspects of the operating environment.
Such a collaboration offers the opportunity to
leverage the specialties of the various entities
involved. It furthermore ensures that each relevant
process within the operation is looked after by
companies most able to manage them.
This is exemplified in the partnership of
international oil companies and specialists, like
British Petroleum (BP) and exploration company
Kosmos to seek assets in Mauritania and Senegal.
Then, there are oil-field services providers, like
Schlumberger, Halliburton and Petrofac, which
aligned with various oil & gas producers to offer
their integrated field management services.
Oil & gas entities are also partnering with power
services provider to ensure the continuous supply
of electricity to their operations wherever they
may be. The importance of electric power in oil
& gas facilities cannot be understated, and by
collaborating with reputable power providers, oil
& gas companies can increase their production,
avoid downtime and enhance operational
efficiencies while minimizing operational
expenditure.
A shift to shorter-cycle projects
At the height of the downturn, the industry saw
a staggering USD 620 billion worth of projects
through 2020 deferred or cancelled. This fact
epitomized the real risks of operating within the
industry amidst the prevailing market situation.
This, therefore, prompted oil & gas companies
to train their sights on more viable shorter-cycle
projects.
For oil & gas companies, dealing with shorter-
cycle projects entailed a new mindset, a
heightened attention to capital allocation and
more innovative ways of doing business. For
example, in shorter-term projects, it may no longer
make sense to devote a large chunk of capital
to permanent facilities, like power generation
systems, which will only serve for a limited time.
In this case, instead of building their own power
plants, oil & gas companies can choose to rent
temporary power plants for the duration of the
project.
Oil & Gas Leaders • April 2017 21