Interesting change in business strategy, as CononcoPhillips looks to increase company production by way of unconventional shale plays. As companies continue to re-structure their business models to compensate for low oil prices, global oil exploration leader ConocoPhillips will cut capital expenditures over 3 years to $11.5 billion, which is down 28%, but will increase spending in unconventional plays by 50%. What is more interesting than their change in strategy is how the results will be perceived in the next three years.
Let’s not forget that Shell is creating their own buzz with the $70 billion acquisition of BG Group Plc. So while one focuses efforts on unconventional shale plays, and the other is putting their eggs in the LNG (liquefied natural gas) basket, who’s strategy makes most sense?
Probably both! While one focuses on the “now,” the other focuses on the “when.”
Maybe this an unlikely comparison, but remember the Mac -vs- PC scenario? Many are still entrenched in discussions of which is better. Both claimed their stake as industry leaders, but each approached the question with very different strategies. One thing is for certain, change within the oil and gas industry is occurring at a fast clip, so enjoy the ride.
It’s safe to say we will continue to use PC’s to read geological data to help find oil, while you are more than likely reading this on your iPhone or iPad.
Click below to read the story from Forbes…