Oil & Gas

Volatility and unpredictability in the oil & gas sector have not abated from the levels we've observed over the last several decades. Geopolitical and economic uncertainties, regulatory restrictions, changing global markets and supply risks are compelling oil & gas companies to up their game and adopt a dynamic approach to operations and processes.

Digital Technologies Driving Innovation

The increasing advancement of digital technology is poised to drive innovations across the oil & gas value chain. From the development of an oilfield to procurement of goods and services, digital technologies can potentially transform end-to-end operations, yielding greater efficiencies and boosting both the top line and bottom line.

Digital technologies and advanced analytics can be leveraged by procurement in oil & gas companies to drive a granular view into operations, identify cost-saving opportunities, mitigate supply risks, redefine supplier relationships and enable strategic decision-making. Emerging technologies such as artificial intelligence (AI), robotic process automation (RPA) and big data can help achieve quantum improvements to drive efficiencies across the source-to-pay operations spectrum ― from spend analysis and sourcing to supplier management and invoice management.

Learn how GEP can help you leverage digital technologies to drive innovation in procurement. Contact us today.

Notwithstanding the surge in oil prices that has benefited the oil & gas companies immensely by bringing more money to the table, there are several key challenges that need to be negotiated, including:

  • Newer, more efficient technologies resulting in less fuel consumption than before
  • Rise of electric vehicles and declining auto demand
  • Significant focus on regulatory compliance and adherence to environmental and personnel safety
  • Increasing cost of exploration and upstream operations
  • Global operations resulting in inconsistent processes and practices

Procurement, with its increasing strategic reach, can help oil & gas companies generate more value by identifying cost-saving opportunities, redefining supplier relationships, increasing spend efficiency and mitigating supply chain risks, to name a few.

Unique Challenges

Every segment within the oil & gas sector has its unique challenges and complexities. The common thread among them is the need to contain costs and drive efficiencies.

  • Upstream

  • Midstream

  • Downstream

Procurement Benchmarking

Cost reduction is not new for upstream businesses who were compelled to slash capital expenditures following the recent oil price collapse. But this has now assumed greater importance amid increasing competition — where companies are expected to maintain the same quality of services and in fact, go a notch higher — and in the wake of personnel and environmental losses attracting huge global scrutiny. Embracing the right strategies and new digital technologies as means to tackle inevitable cost escalation, and finding new avenues of growth and efficiency will be critical to sustainable success.

Opportunity Identification

Category Planning

Comprehensive and Value-Driven Solutions

GEP has almost two decades of procurement expertise that spans consulting, technology and managed services. GEP’s procurement solutions for the oil & gas industry encompass spend analysis, category management, strategic sourcing, supply market intelligence, supply risk management, and much more.

Our team of industry experts is continually focused on identifying new avenues of growth and efficiency for our oil & gas clients, and accelerating the process of value realization.

Vertical Expertise