As oil prices began falling in mid-2014, oil market observers naturally assumed that OPEC would play its traditional role and cut production in order to stabilize prices.  However, since then, the group has failed to implement any meaningful cuts, contributing to a massive global supply glut and a bear market in crude.  While this course of action is partially a response to the economics of US shale plays, it has been driven by internal clashes within OPEC, particularly between Saudi Arabia and Iran. 

Two cost-reduction concerns are top-of-mind for Oil & Gas firms right now: 1) Ensuring maximum savings from the downturn, and 2) Protecting against price escalations from the rebound.

In a recent webinar attended by 60+ O&G peers, a leader in Statoil's supply chain discussed how her organization achieved wins in these areas, driving substantial cost-avoidance for high-spend, strategic categories.

In this webinar recording, you'll learn:

• How to create data-driven counteroffers in supplier negotiations and tie costs to specific indices
• How to position yourself in a market of increasing prices 
• How Statoil took advantage of cost models to achieve more than $450K+ of cost reduction and avoidance
• And lots more...

As a result of the US economy's glut of steel imports, the International Trade Commission (ITC) has received more than 50 complaints since 2013 from domestic producers calling for new tariffs on imported steel for both antidumping and countervailing actions. Antidumping tariffs are duties that offset predatory pricing, defined as selling below cost, whereas countervailing duties offset subsidies applied by foreign countries to their domestic industry.

With the future of oil and gas prices still uncertain, many midstream and downstream firms are asking how much investment is still being planned for the coming years.

In today's project forecast update, we share how and where the market is planning projects in the midstream, refining, and petrochemical sectors over the next four years. Read on to view maps of the top areas of capital investment through 2020:

Billions are Planned in Gas Pipeline, LNG, and Energy Storage Projects

Sources: SNL, Oil & Gas Journal

This map of planned midstream investment suggests three important observations:

• Large LNG projects will ramp up over the next 4 years
• The Gulf Coast continues to be an area of some of the largest investments, with many pipeline projects still planned for the Northeast
• Storage projects are not to be overlooked as an area of competing investment

Let's next take a look at the downstream market.

More than $100B of Downstream Projects Planned through 2020

Sources: Oil & Gas Journal, Petrochemical Update, ICIS Chemical Business Magazine

With billions of dollars of Oil & Gas projects still in the forecast, craft labor markets are becoming more and more constrained. And at the same time that demand for labor is rising, supply of skilled laborers has declined drastically and benefits & health care costs have risen to new highs.

The result is an especially challenging labor market for Oil & Gas firms working with welders, equipment operators, electricians, pipefitters, carpenters, and other craft laborers.

In our latest Labor Market Update, we share:

• Why labor market supply has plummeted since the recession and which sectors are experiencing the greatest hit
• Where supply/demand dynamics are expected to result in the greatest risks
• Which wage build-up components you can negotiate against in service RFP's
• And lots more...

Interested in viewing the labor update? Click here to access the brief 20-minute recording:

Two months ago, the British Pound lost 15% overnight. Since 2012, the Japanese Yen has lost 58%. So how do those drastic changes in currency markets impact Oil & Gas?

In our latest Oil & Gas currency update, we share:

• Why it's so important for O&G firms to pay attention to currency markets
• Specific tactics for taking advantage of currency volatility and achieving millions in savings
• How currency wars and competitive devaluation drive risk and opportunity for O&G

This presentation was the most highly rated content at our annual User Group conference, and it has since been viewed by more than 40 energy firms.

Interested in viewing the currency update? Click here to access the brief 20-minute recording:

Negotiating with Oil & Gas suppliers is notoriously difficult: suppliers have a better sense of market demand, they have more data on their cost structures and overhead, and they have more visibility into their competitive landscape. Today, we share 3 research-backed negotiation tactics that Oil & Gas supply chain professionals can bring to the table to remedy that imbalance of information.

Whether you’re a seasoned negotiator or preparing for your first supplier negotiation, read on to learn more about the 3 psychological principles that Oil & Gas supply chain professionals can use to drive down costs.

Brexit didn't have to shock the markets as badly as it did. Increased volatility that this event created (see here for our webinar on the topic) highlights the importance of tracking market trends against a calendar of geopolitical events relevant to your business. Such events have demonstrated time and again their ability to jolt markets, and even cause inflection points that drive economies into severe downturns. It is therefore important to look forward to the following international developments relevant to O&G:

Curious what the Brexit means for Oil & Gas? Will the implications be wide-ranging, or is the decision primarily symbolic?

In our latest Q&A session, we share:

• What actually happened
• What the Brexit means for O&G Supply Chains
• And how you can proactively respond

We invite you to view the brief 20-minute recording here:

Thanks to everyone for our 9th successful User Group conference!

In today's post, we share a brief recap of the content, and if you're interested in hearing more about any of the presentations, just send us an email at costinsights@poweradvocate.com, and we'd be happy to set you up with any of our presenters.

Members of the Energy Intelligence Group present their "State of the Market" update