Oil was hit by dual shocks – COVID-19 crushed demand and a Saudi-Russia price war piled on. While prices are now rising, it’s doubtful oil markets will return to “normal”, and uncertain what future normal will be. Industry fundamentals have changed and radical restructuring may occur. High cost producers will be hit hard, posing an existential threat for some.
Oil companies need to rethink strategies and take bold action to survive and thrive. Per McKinsey, there are strategic options – basin master, midstream/trading leader, technology specialist, low cost producer, value-chain integrator, energy transition specialist and others. Not making a choice is not an option for many. Company data capabilities will separate winners from losers and help analyze next steps.
MOSIMTEC oil and gas simulations of upstream, midstream, downstream can stress test options, also help manage data and remote work better. Simulation options include end-to-end hydrocarbon supply chain analysis, resource scheduling, tank farm capacity planning, rail yard design validation, oil rig production storage and offloading planning, transportation network testing, disaster response procedure simulation, and more. Technology lights the way and MOSIMTEC is here to help.
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