In the past few years, the United States oil and gas industry has been facing challenges from the changing landscape of the global oil and gas industry. Many in the industry have been left with no other choice than to try out new business models and ideas in order to keep up with these new changes.
Be Open-Minded to Survive
Having an open mind when it comes to new ideas and ways to do things is crucial if a company is going to survive the ever-changing oil industry. You also need to be open to making big changes within your company.
Gulf Coast Western, a Dallas, is a Texas-based company that centralizes on the exploration and purchasing of national oil and gas reserves. Matt Fleeger, the president, recently recalled some of the challenges his company has gone through. Especially during the recession back in the early 2000s.
Fleeger said he had to re-invent how everything worked. From day-to-day operations in the company right down to his own personal daily habits, he renovated everything. Tiring as this was, it didn’t come without any benefit. It led to some pretty cost-efficient findings within the company. Some of which allowed the company to focus on key personnel instead of overhead costs. This is why the company has been a role model for growth in the industry.
Good Relationships are Essential
In the changing environment of the oil industry, there are a few things that a company can do to survive. One of those things is to establish good partnerships with other companies. Partnering with another company can be good in that it allows both companies to combine needed resources for both parties to survive any problems within the industry.
Fleeger recounts Gulf Cost Western’s partnership with Joint Ventures, an investment company that garners growth and profits on third party assets in prominent oil and gas companies. The partnership was what saved the two companies when the industry was going through some changes. It allowed them to absorb any pitfalls and come out on top.
In the end, in order for a company to survive changes, they must be open-minded to employing new ideas and changes. They must also have and keep good relationships in case there’s a point your company needs something and doesn’t have it.