How CTD will be the Next Normal for O&G Industry

Unprecedently, O&G industry is going through its toughest time marked by a pandemic lock down and sudden worldwide production glute causing a huge affect on the ongoing as well as on future projects. Both events occurred simultaneously, and it created a vorticial panic among investors and all stakeholders.

A microscopical study performed by CoilDRILLING Consultancy team in order to disaggregate multiple recessions the industry went through since the 80s boom demand on oil and gas. The team came to the conclusion that duality of fit for purpose equipment as well as the depreciation time of these equipment from one side, and the recession frequency from the other side were strongly linked. Not a single time an equipment from well services (4 years cycles-major maintenance) and drilling equipment (10 years cycles-major maintenance) had achieved its depreciation without going through a downturn. A fit for purpose equipment is designed specific jobs in order to achieve better quality deliverables. Whereas a multipurpose equipment are easily deployed to other type of jobs. Who benefits from these situations? Who benefits from reselling equipment at half prices or even less? Banks and Big Corporates do.

In order to survive the recessions cycles, it is mandatory to have multipurpose equipment with high performance, and this is where Total Quality Management concept comes on line: designing performing multipurpose equipment, developing multiskilled workforce will be the new normal… The Next Normal.

In order to make our industry great again, changing the way management thinks, and consequently changing public opinion about the O&G industry is crucial. It starts by adjusting all stakeholders’ perception, from investors to employees and managers arriving to environment activists. It is our mission, Professionals of the O&G to make the industry great again.