how to get through a downturn - Rigzone

Speaking at the 17th GE Oil & Gas Annu- al Meeting in Florence, Italy, at the start of. February, Immelt outlined GE's efficacy at surviving market crashes, highlighting the firm's aviation business in the process: “We know cycles. We've lived through cycles, we know how to lead a company through cycles … [After 9/11] we saw ...
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FEBRUARY JULY 2015 2016

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HOW TO GET THROUGH A DOWNTURN 06

TRUST CRITICAL FOR MEXICO ENERGY REFORM SUCCESS 08

SCOTLAND’S OIL INDUSTRY MIGHT BE DOWN, BUT IT ISN’T OUT

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JULY 2015 CONTENTS

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HOW TO GET THROUGH A DOWNTURN

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Trust Critical for Mexico Energy Reform Success

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Scotland’s Oil Industry Might be Down, but It Isn’t Out

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Low Oil Prices Likely To Lighten Political War Chests

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FEBRUARY 2016 EDITION

ASST. EUROPEAN EDITOR

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FEBRUARY 2016

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How to Get Through a Downturn Andreas Exarheas, Assistant European Editor

@Andreas_Ex

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FEBRUARY 2016

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T

he latest fall in oil prices has

“We grew our investment in R&D [research

now, five years from now, ten years from

hit the energy industry hard.

and development] last year … we’re

now and you’ve got to take the actions that

Figures have dropped from

working on financing to try to provide bet-

really protect the future.”

over $100 per barrel in 2014 to as low as

ter CAPEX [capital expenditures] to OPEX

$27 per barrel this year and a variety of

[operational

transitions

lieve they can get through the downturn by

oil and gas companies have responded in

… We haven’t blinked during this crisis.

doing nothing in the hope of a speedy oil

different ways in a bid to survive the down-

We’ve kept investing, we’ve kept driving

price recovery, Immelt stated that the situ-

turn.

and we’ve made the company better and

ation is unlikely to improve any time soon:

we plan to continue that progress in the

“We live in a time of slow growth and

Some energy firms have reacted to the dramatic price reduction by streamlining

expenditures]

future.”

In a warning to oil and gas firms that be-

volatility. It’s unlikely to change anytime

their operations while others have largely

Immelt, who became CEO of GE in 2001,

soon … You have to just keep driving pro-

resisted this path, taking a more relaxed

also emphasized that companies should

ductivity and investment in the cycle we’re

approach in the hope that the value of

just “focus on what they control” during

in today. You have to learn to act in the face

crude bounces back soon. While both tac-