The results are in...
3 Questions Recently Asked to an Oil & Gas Webinar Audience
Posted: November 18th 2020
Do people tell the truth on anonymous polls during webinars?
I am not sure if they do or not, but I do have the answers they provided.
The answers to these poll questions tell a compelling story!
A story that makes sense to me.
So, I will assume everyone told the truth.
On November 9th, I gave a webinar to the O&G industry. During the presentation, I asked 3 poll questions:
1. According to the International Energy Agency (IEA), the global economy will return to its pre-COVID-19 level in 2021. When does the IEA expect total energy demand to return to pre-COVID-19 levels?
a) 2021 b)2022 c)2023 d)2024 e)2025
2. Can your company survive in a market with depressed demand until then?
Yes or No
3. Is your downstream value chain optimized or pieced together point solutions?
Yes or No
The correct answer to the first question is 2023 according to the IEA.
That is a long time from now!
However, a lot can happen between now an them. We do not know what regulations will come from governments around the world. We also don’t know what innovative technologies will be developed that could affect the industry. What I do believe though, is that the market volatility is going to continue for the foreseeable future.
It is the next two questions that I find the most interesting.
75% of the respondents believed that their company could survive until 2023, meaning that 25% don’t think their company can survive given the current marketing conditions.
When you couple that with the fact that 100% of the respondents said that they still use legacy point solutions to manage their value chain, I think that the 25% may be too low. In my opinion, it will be very tough to survive his turbulent market with legacy point solutions holding you back. These point solutions create silos within companies an inhibit collaboration.
But all is not doom and gloom. Yes, we are in the middle of turbulent times. However, when we come out the other end, it is not too late to prepare for a better future
Companies that continue to use disparate legacy point solutions will be unable to remain competitive.
In order to remain competitive in a volatile market, companies need to be agile. They need to break down silos. They need to collaborate across the value chain.
In this case, agility and collaboration is fueled by technology.
Digitalization of the value chain, also known as value chain optimization, is an essential part of staying competitive.
It is crucial that all departments and different teams across the value chain collaborate on a journey that will provide significant impact the overall business.
A value chain optimization strategy tackles the supply chain, operations, and optimization. Incremental benefits can be realized in each area, which in total can boost profitability by $50 to 300 million per year for a typical oil refinery. I hope that caught your attention.