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With Decline in Oil Price, Cost Optimisation is the only Way Forward for Upstream Players

State-run Oil and Natural Gas Corporation as embarked on a belt-tightening exercise following a sharp drop in oil and gas prices that have started hurting its profit, its finance chief said.

Source:  ET

SNP Insights

With almost 60% decline in oil prices, optimising the cost of production is the most appropriate way left to trim down losses. Pertaining to fact that many global majors have shelved many exploration projects, for which machinery & labor cost has gone down, leading to lower OPEX, upstream companies, can leverage the moment to expand their exploration capacity.

Source: SNP Infra Research