Oil & Gas: Defunct business models

Interesting article in FuelFix quoting Mr. Paal Kibsgaard, CEO of Schlumberger.

"“We believe that project performance can only be improved by finding ways of breaking with the past and replacing the existing model with a new approach based on collaboration and commercial alignment between operators and the largest service companies,” (Kibsgaard) said."

Mr. Kibsgaard highlights the waste that follows the business model in use for the past 25 years:

"For roughly the past two decades, producers have drawn up master plans in house, then gone out and contract with dozens of suppliers separately for each piece of the larger project. The lack of coordination during the planning phase, as well as the lack of coordination between suppliers, has led to high costs poor financial results, Kibsgaard said."

Read the article here.