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Oil & GAS Budget Cuts in 2009 - smart Implementation

  • Artikkeli

I am hearing about CAPEX budget cuts ranging from 15% to 40% for next year. The question on my mind is-- How these cuts being implemented? Are companies going through a rigorous process, looking at the impact of cuts on a consistent basis? Are you looking at the impact of delay vs. cancel? Or are blunt instruments ( like system wide uniform budget cuts) being used. Is there a better way with measurement of the impact of such cuts against the Net Present Value (NPV) being created? OR is there a measure of business unit capability created vs. the value of the capability? How can we be smart about the selection and re-qualification of projects in order to generate the cuts being demanded?

Looking for your input

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