Small & Medium Oil Field Services Companies – Market Dynamics and Challenges
Oil Exploration and Production is a complex process, and each step of the oil supply chain involves specialized technology. Oilfield services companies provide the infrastructure, equipment, intellectual property and services needed by the international oil and gas industry to explore for, extract, and transport crude oil and natural gas from the earth to the refinery, and eventually to the consumer.
Key issues in this industry segment are turbulence in Oil prices, rising exploration costs, credit crunch, increased cost of capital, weak demand and other market challenges and movements (mergers and acquisitions). Oilfield services companies are also facing challenges in different processes like Health Safety & Environment, Asset management, financial consolidation, Governance Risk and Compliance, Technology Innovation, Knowledge Management etc. As a result, OFS companies are focusing more on operational efficiency, maintaining liquidity and leveraging integrated IT systems to deliver services and solutions in a compliant, secure and efficient manner.
In fact most of the Oilfield Services companies are now looking at rapid implementations of suitable end-to-end solutions that enable them to streamline their operations and reduce their time and effort on less value added activities. Also this helps in reduction in cycle times and improves processes in their core value adding opportunities.
Explore more on this at OOW'09 - http://www.infosys.com/oracle/oracle-openworld-california09/default.asp
-Sachin Kumar Jain
Sachin has over 10 Years of IT Consulting experience and leads Energy vertical within Oracle EBS Technology space at Infosys
