How to Avoid a ‘Hollowed Out’ Supply Chain in Oil and Gas

There is a fear that in the energy transition the offshore oil and gas supply chain could be hollowed out to such an extent that gaps in service provision and product delivery could occur in future. For E&P operators, this could be interpreted as a stark “use it or lose it” warning from their suppliers.

Barry Rust and Peter Bradshaw, Tata Steel
How to Avoid a ‘Hollowed Out’ Supply Chain in Oil and Gas

The oil and gas industry’s greater focus on sustainability is also being felt across the offshore supply chain, where companies are developing wide-ranging, detailed and robust decarbonization programs. (Source: Shutterstock.com)

The offshore oil and gas industry is currently experiencing challenges and changes on two fronts.

Firstly, the COVID-19 pandemic, which has forced reductions in global travel and restricted industrial output due to workplace closures, has had a significant impact on oil prices. 

However, the short-term effects of the pandemic have merely exacerbated a long term challenge for the offshore sector which is the second issue facing the industry—an anticipated decline in demand as consumers look towards more renewable sources of energy and multi-modal transport options.

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