The PESA Human Resources and Supply Chain Committees jointly hosted a Recovery Planning Seminar on May 23 at GE Oil & Gas. The seminar addressed recovery planning activities and the impact of current market instability. Leading industry executives shared strategies on positioning organizations to maintain lead times while controlling costs through human capital management.
The seminar began with a market indicators presentation from R.T. Dukes, Research Director, Wood Mackenzie, and labor statistics insights from Reid Morrison, Global Energy Lead, PwC. With an optimistic outlook, Dukes predicts $60-$70/bbl oil and increased demand growth by 2020. He shared statistics around recovery in the high-profile Permian Basin as well as other plays.
Although the Permian represents roughly 40% of new rig additions this year, the SCOOP/STACK and Eagle Ford have also yielded impressive rig additions that have increased by 20% since January. Dukes reported that the Permian plays absorb the largest share of operator spend. Core areas will continue to yield attractive returns despite inflation with break-evens expected to increase. Dukes advised following oil as closely as natural gas and NGLs in the future. With a combination of larger operators and small, private operators throughout the Permian, Dukes encouraged service companies to seize this growth opportunity.