Strategic crisis management during COVID-19: some recommendations for oil and gas enterprises
Abstract
Oil and gas companies around the world are suffering double impacts during the COVID-19 pandemic. Firstly, social distancing and lockdown measures imposed in many countries have led to difficulties in movement, frozen supply of high-quality human resources, closure or reduced scale of certain number of production facilities, interruption of important services, and unpredictable prices, affecting the continuity of production and business activities. Secondly, as oil demand goes down due to plummeting travel demand and lessened economic activities, oil prices have seen an unprecedented low in the history, resulting in serious consequences, e.g. shrunken revenue, excessive inventories, and instability or shortage of cash flow, causing difficulties for businesses in various sectors such as E&P, oil and gas production and processing, oil and gas technical services.
In this paper, the author introduces the strategic crisis management approach proposed by Martin Hirt (McKinsey), with some recommendations for oil and gas companies from BCG and IHS consultants and the author himself in the context of this unprecedented crisis.
References
[2]. Deloitte, “COVID-19 checklist: Practical steps for immediate, midterm, and long-term”, 4/2020.
[3]. BCG, “Navigating through COVID-19 and oil supply-demand shock”, Presentation to PVN and VPI, 4/2020.
[4]. Accenture, “Continuity in crisis: How to run effective business services during COVID-19”, 4/2020.
[5]. IHS, “Webinar: Navigating short-term risks and planning for long-term value creation in E&P”, 4/2020.
[6]. Kevin Sneader and Shubham Singhal, “The future is not what it used to be: Thoughts on the shape of the next normal”, McKinsey & Company, 4/2020.
[7]. Hugh Courtney, Jane Kirkland and Patrick Viguerie, “Strategy under uncertainty”, Harvard Business Review, pp. 11 - 12, 1997.
[8]. Rystad Energy, “Covid-19 report, 6th edition: Global outbreak overview and its impact on the energy sector”, 4/2020.
[9]. Wood Mackenzie, “Exposing and managing risks in oil and gas supply chain”, 4/2020.
1. The Author assigns all copyright in and to the article (the Work) to the Petrovietnam Journal, including the right to publish, republish, transmit, sell and distribute the Work in whole or in part in electronic and print editions of the Journal, in all media of expression now known or later developed.
2. By this assignment of copyright to the Petrovietnam Journal, reproduction, posting, transmission, distribution or other use of the Work in whole or in part in any medium by the Author requires a full citation to the Journal, suitable in form and content as follows: title of article, authors’ names, journal title, volume, issue, year, copyright owner as specified in the Journal, DOI number. Links to the final article published on the website of the Journal are encouraged.
