Page 44 - Impiantistica Italiana 5/2016

Fig. 1 - IOCS (International Oil Companies) initiatives along the value chain

through headcount reduction and suppliers re- Eni, Total, Shell, Statoil, BP, Saudi Aramco, So-

negotiation on the other hand. Such a respon- nangol, Woodside and Engie) to assess the po-

se has generated savings in a range of 5÷15%, tential to standardize a first set of components,

which helped but was not sufficient. Therefore, including Christmas trees and ball valves (figure

the industry is moving into a second wave of ac- 1).

tions that will be more strategic and will target
both productivity increase and business restruc- The industry is moving into a second wave
turing. In this scenario, costs could be reduced of actions that will be more strategic and
by an additional 15÷25%. will target both productivity increase and
To achieve such challenging goals, Oil Compa- business restructuring. In this scenario,
nies will leverage on both internal levers (e.g. eli- costs could be reduced by an additional
minating portfolio and organization complexity; 15÷25%.

increasing productivity through lean and digital

production processes; accelerating standardi-

zation process) and external interventions (e.g.

M&A; business restructuring; energetic mix re- For the above reasons, the turmoil has had a rele-

view; strategic relations with suppliers). Indeed, vant impact on Oil Field Services and Equipment

if a year ago some actions were only arguments providers with market capitalization shrunk by

for discussions, nowadays Oil Companies have 25% between 2014 and 2015 and impacts affec-

started to move forward. On standardization for ting all service and equipment segments in both

Lae2x0ap1m5rpealmev,oiasngipoarongjereoctudpwioasfsOkpiilcCekeosdmapoaffgnaieltosth(bCehaeenlvderoonO,f FoaSnndsEhuoènrecoarnnivdbenoatfifossnhsaoliresp,rtoaajnedcitnsin. bIqnoutaharcesocinevtneutnsttitotuindayl
i segmenti, per effetto di ulteriori 'greenfield projects' rinviati

Total spend in Total spend in
2014: $US 986bn 2016: $US 656bn

CAGR (’14 – ’16F) 1 to 10% No growth Comparison
>10% -6 to -10% -11 to -25% unavailable

0 to -5% >-25%

Note: Data calculated from consolidated E&P expenditures excl. internal spend PROVISIONAL
Source: Rystad, May 2016, Bain Analysis

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

Fig. 2 - IOCS (International Oil Companies) initiatives along the value chain

42 Impiantistica Italiana - Settembre-Ottobre 2016