Oil ex­ec­u­tives ready for more job losses: re­port

Pilbara News - - Pilbara News - ■ Ali­cia Perera

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.

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