The Managing Director of PennWell International, Mr. Glenn Ensor has said that oil and gas companies should increase their level of transparency in their business operations as part of the strategies to survive the slump in the price of crude oil.
Speaking at the sideline of the just-concluded 2016 Offshore West Africa Conference in Lagos, Ensor suggested that in addition to doing business in a transparent manner, the companies should also control their cost in order to make profit and survive the current industry crisis.
Ensor admitted that cost control for International oil companies in Nigeria is going to be a technical and strategic challenge.
“For developing fields, the watch word is cost control. Companies need to bring down the price of oil at which they can obtain profit and survive. That is going to be a technical and strategic challenge for the industry," Ensor said.
As Iran prepares to supply of crude oil into the international market, following the lifting of the international sanctions against it, coupled with low demand from China, Ensor said oil price would remain low for a while.
Commenting on America’s Shale gas, Ensor said it had become remarkably resilient and flexible by bringing down their cost structures to stay in the market.
He said the America Shale gas style to remain resilient and flexible in the market started with Saudi Arabia.
"Saudi Arabia started this process as way of forcing higher cost producers out of the market and market share in a world where hydrocarbon demand is not rising especially with the Chinese situation. But what this will lead to is to force producers around the world to look at efficiencies and cost control to stay in the game. With Iran coming on after the agreement recently signed, it is difficult to see any upward pressure on oil prices as things currently stands. At the moment, the fundamentals suggest that lower oil prices will stay for a while," Ensor said.
Also speaking on the success of Offshore West Africa, OWA 2016, PennWell Managing Director said “We are extremely pleased that Offshore West Africa 2016 has been so wonderfully received here in Lagos, and this has been a great way to celebrate 20 years of the event, with a record attendance once again”.
“Continuing the successes of the 2015 event in somewhat turbulent times for the industry within Nigeria is something that we thank all participants, including delegates, visitors, sponsors, exhibitors, and speakers for, in helping us achieve this,” he said.
The three-day Exhibition as part of Offshore West Africa comprises of both prominent local and international organisations, displaying their latest products, services, technologies and industry innovations.
For the second year in a row, Offshore West Africa included a continuous professional development (CPD) programme, supported by the Energy Institute Nigeria.
This Initiative is part of PennWell Corporation’s and Offshore West Africa‘s ongoing Corporate Social Responsibility Strategy to help with the West African region’s objective of developing a fully sustainable sector.
