professionals from an oil company comparing yields through data in charts

The Right Strategies For Oil Companies In 2023

Oil companies worldwide have realized that the market is now changing rapidly. With rising demand for fossil fuels that currently supply nearly 80% of the world’s energy, oil companies are looking for ways to increase sustainability in their operations.

Many of the easy-to-get gas and oil reserves are already tapped out. Companies have started exploring more reserves in areas where the drilling environments are not as friendly, such as platforms in the midst of the undulating ocean. Besides difficult extractions, geologists also fear the possibility that the accessible reserves would have smaller than estimated hydrocarbon deposits.

However, technological advances have enabled a broad variety of unconventional gas and oil exploration techniques that allow squeezing out resources more efficiently, even in areas where it would’ve been impossible otherwise. Oil companies worldwide are therefore trying to reshape conventional practices to improve productivity and strengthen their competitive positions.

Here at CNPS, we’re dedicated to helping the oil and gas sector achieve its goals by making it easy to access cutting-edge solutions, such as mudlogging equipment, fiberglass piping systems, alloy OCTG, EOR technology, and more.

Here are some strategies we suggest for oil companies looking to create value in 2023 and beyond.

#1- Diversification

In addition to the gas-prone trend, oil and gas market leaders are spending billions of dollars on ventures surrounding clean energy. Many smaller organizations are following suit by investing in projects in the renewables sector.

Others are rebranding themselves as energy companies positioned in offshore and onshore solar, and geothermal, wind farms. Segments like carbon capture and storage, biofuels, and others have also been garnering a lot of attention from oil companies looking to invest in a sustainable future.

#2- Integration  

Although many international oil companies are diverting from fuel distribution and downstream, a lot of NOCs have started investing in petrochemical and refining capacity to industrialize their home country and secure crude oil outlets. These large-scale new refineries are likely to displace smaller ones and will ideally be built alongside the petrochemical complexes.

Oil Company partnering with a refinery

#3- Niche Specialization

Various independent, small-scale organizations have succeeded in specialized niches. Some remarkable examples include US-based firms more active in the Enhanced Oil Recovery and the tight/shale gas and oil segments or the Canadian companies specializing in tar sands. They’ve paved the way for technological developments and set trends for best practices that can be followed by others in the niche.

#4- Partnerships

Partnering with other companies provides a great opportunity to combine hydrocarbon and capital resources for projects that often exceed a single firm’s budget or have a significant impact on its risk profile portfolio.

This also enables organizations to learn about the management of people and large-CAPEX projects, build a relationship with communities, acquire new operational practices and technologies, and benefit from indirect access to creditors of the partner firm.

Therefore, NOCs with generous access to sub-surface resources can partner with OFSCs and IOCs for financing, funding, and operational or technical matters.  

The Journey toward Becoming the ‘Oil Company of the Future’

smoke coming out of an oil refinery

Oil companies must constantly adopt transformational strategies and practices to prepare for the uncertainties of the changing world while meeting demands and staying up to date with global trends.

It’s essential for oil companies to re-think identity growth and long-term survival with meaningful yet strategic actions that can protect them from the genuine risk of becoming obsolete. They must take the initiative to balance agility and efficiency while exploring diverse options for increasing productivity and returns.

To ensure survival, they should look for opportunities to grow with non-conventional ventures and third-party and self-led pilots. It will allow them to take advantage of emerging technologies in the new sustainable energy ecosystem.

CNPS is helping oil and gas, marine and offshore, and many other sectors with agile solutions that aid adaptability to rapid market changes. These companies rely on our solutions when undergoing the deep transformation of their capabilities, cultures, and skills to create sustainable, long-term competitive positions in the global market.

We offer a range of sustainable and advanced geological tools and equipment to maximize the growth and competitiveness of the petrochemical industry. Our China-based company caters to a global clientele and has helped countless firms achieve compliance, higher performance, and safety standards with our top-notch solutions that meet the latest ISO and API standards.

You can easily find all the information online about our alloy OCTG, mud logging equipment, RTP, GRE, GRP, and FRP piping systems, GRE casing solutions, and other cutting-edge products for well logging, enhanced oil refinery, oil mining, production, and cementing.

Schedule a consultation with our experts right away to learn more about our geological field supplies that sustainably boost yields and improve safety in oilfields. You can also call us at +86 18354639099 if you need more information or assistance from our experts.

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