Oil and gas (O&G) companies are poised at a crossroads as energy security, supply diversification, and low-carbon transition all affect the energy market. But despite the challenges, 93% of O&G companies still have a positive outlook for the coming years. However, those companies need the right plan to face challenges and meet opportunities in the future.
In many cases, the goals and strategies set by O&G companies are only skin-deep, more like mission statements than an actual plan of action. Unfortunately, without concrete goals and a roadmap to take them there, companies miss targets and underperform. On the other hand, a new approach to planning can reverse that situation.
Why O&G Companies Need a Clear Plan of Action
Developing clearer strategies enables O&G companies to better outline and implement practices that meet their ultimate business goals. Strategies that have a real impact on refining, transportation, logistics, and other practical aspects of their operations translate to reduced costs and maximised profits.
Clearly defining processes, procedures, and protocols allows O&G companies to identify, control, and minimise risks. At a time when supply chains and material costs are more pressing than ever, O&G companies stand to cut costs by up to 15% by taking a careful approach to secure their supply chain.
Clear operational strategies are critical not just for productivity and profitability but for maintaining safety standards throughout the industry. In the UK, O&G companies saw critical maintenance backlogs increase by 50%. New solutions are needed to maintain health and safety even in the face of labour shortages and other challenges.
Increasing regulation poses another challenge that O&G companies need a clear roadmap to navigate. Defining policies and procedures can help avoid penalties and fines or even the potential loss of operational licenses. Given the UK’s current target of net-zero emissions by 2050, O&G companies face considerable challenges over the coming decades.
Developing and Implementing an Action Plan
While the oil and gas industry faces significant challenges, there are also opportunities on the horizon. Follow these steps to develop and implement a clear action plan that can allow O&G companies to enjoy a strong performance in the future:
- Develop a Single Source of Truth
Leveraging data is everything when it comes to setting goals, benchmarking, and monitoring progress. Bringing together management control systems from senior management through floor operators into a single source of data ensures that your organization can make the most of all metrics, meetings, reports, and short-interval controls. Organizations can then offer new insights to guide decision-making and drive accountability.
- Ensure Clear Communications Across All Levels
Any barrier to communication is a potential barrier to performance. O&G companies must ensure that their strategies are communicated to all employees, contractors, and stakeholders. When everyone understands the company’s goals, objectives, and targets, they can make meaningful progress with every decision. Frequent updates on progress motivate teams and draw attention to areas where it’s needed most.
- Detail Every Aspect of Your Plan
When you are developing a strategy, nothing should be left to chance. O&G companies must define specific targets, timelines, and performance indicators in their action plans. Clear criteria for success will help guide performance. Assigning defined roles and responsibilities is just as vital to ensure accountability and prevent any essential tasks from being overlooked.
- Create a Culture of Continuous Improvement
O&G companies will continue to face new challenges in the future, which means that action plans can’t be a one-time fix but must instead target continuous improvement. Encouraging employees to share ideas and feedback can let companies adjust their strategies, and rewarding innovations and creativity in any role can unlock hidden value. As the best strategies start to produce tangible results and more goals are met, O&G companies can continue to set new targets for their processes, procedures, and systems.
Turning an Action Plan into a Reality
For an O&G company to achieve the goals laid out in its action plan, it needs the right tools and professional support to get there. Renoir delivers these operational and financial benefits for our clients by providing services and solutions that work toward goals at every level of the organization.
Undergoing a business transformation to develop more effective systems and processes can reduce production losses and ensure optimal cost-effectiveness. We can help you create a culture of discipline and structure that ensures targets are met and exceeded. We also provide a wide range of digital technology solutions that will enhance the impact of your operational and business processes.
You can talk to one of consultants today to see how our solutions can help your organisation address the unique challenges efficiently and sustainably.