Strategic crisis management during COVID-19: some recommendations for oil and gas enterprises
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.
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