Are We Ready to the New Normal?

My thoughts on oil & gas industry in Indonesia.

Facts:

Oil Price decreases rapidly from $100s to $30s, while lifting cost stays at $30s. It barely makes profit.

Prediction:

Economists and oil price experts have been predicting that the oil price would not increase, so the low price is “the new normal”. Or at least until 2017, unless OPEC, Rusia, Iran have significant moves.

Idea for The New Normal

1. Design for Value, it is a kind of “lifestye drastic change”. In the past the design and technology in O&G companies could afford the level of “Mercedez or Camry”; now we have to adapting to the fit for purpose towards the function.
2. Adopting aggresively Lean Operating Model especially for critical and repetitive processes: Procurement/SCM, Contract, Permit, until POP and Well Response Time.
3. Different kind of collbaoration: Embracing Big Data & industrial internet, an innovative collaboration with all stakeholders (regulators, suppliers, competitors) and maybe adopting a platform economy around inventories?

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