PwC has called on oil and gas companies to adapt their strategies or run the risk of failing to grasp opportunities within the sector.
In a new report, the firm explained that the North Sea is facing a "complex and difficult" future as oil prices continue to tumble. It warned that it could result in a reduction in investment and ultimately a faster decommissioning of oil fields. PwC believes that oil companies need to review their strategies now to ensure they do not get left behind.
Among the suggestions put forward in the report include re-evaluating the shape of the business and developing a revised business model and strategy. PwC believes that oil firms need to embrace new technology and innovation to meet the changing demand of the sector. Divestation was also a major part with PwC recommending this is done with non-core parts of the business.
The company described the UK oil and gas industry as facing an "economic triple whammy" and so it is vitally important that companies heed the lessons learnt in the past and prepare accordingly.
Brian Campbell, oil and gas capital projects director at PwC, said: "It’s not too late to glean some good out of adversity and for businesses to work together to create their own new dawn for the North Sea.
"There are a series of levers business leaders can pull, which, as we’ve seen in the past, can lead to long term sustained efficiencies and opportunities for their business and the wider industry."
Tumbling oil prices
Global oil prices are continuing to fall and rating agency Moody's recently painted a rather bleak picture for the coming years. The organisation said that the tumbling prices will fail to provide a "significant boost" to growth across the world in the next two years. It highlighted ongoing economic problems in the eurozone as hampering any progression.
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