Oil executives ready for more job losses: report
A new research report surveying oil and gas companies has found Australian sector executives are readying for further job losses this year as the favoured way to reduce costs.
The international survey, conducted by oil and gas technical consultancy DNV GL, found around one third of Australian senior staff in the in- dustry believed job cuts were the best way to manage costs more effectively in light of a still-low oil price for 2016.
Only tougher approaches to capital expenditure rated more highly.
DNV GL oil and gas Australia manager Richard Palmer said national companies had to adjust to the market’s “new reality”.
“With the low oil price, a high number of projects have been delayed or cancelled,” he said.
“The industry has taken painful short-term cost-cutting measures by reducing headcount and squeezing the supply chain.
“The sector must accelerate meaningful cost-management changes that do not compromise safety and which enable Australia to adjust to the new reality. That means cutting complexity and increasing collaboration and standardisation, which will put the industry on a sustainable growth path for the long-term.”
The report suggested companies could also preserve finances in a “cost-pressured environment” through innovation, such as by increasing collaboration with other oil and gas companies.