Drastic Measures in the Oil Patch Helped Survival – But Can They Translate into a Sustainable Cost Management Program?

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The oil bust, which began shortly after prices peaked at nearly $108 per barrel in June 2014, has pummeled U.S. producers. Leading producers responded by extending payment terms with suppliers, aggressively renegotiating contracts seeking price concessions, and deferring or cancelling projects, among other cost savings actions. Now the question for energy companies is can they transform their emergency cost-reduction strategies into long-term programs that sustain benefits, and effectively manage and track costs over the long haul.

This article outlines the steps procurement personnel need to take to build a sustainable cost reduction and management platform to maintain long-term savings.

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