4 Signs Your Oil & Gas Company Needs an Expert Energy Consultant Right Now
By Elaine Russell
When should your oil and gas company enlist the assistance of an expert energy management consultant? The answer: now. Recently, oil and gas consultants have helped companies navigate the murky waters of the market downturn (think the 200+ bankruptcy filings in 2015-2016)—by advising with respect to restructuring. However, over the course of its lifecycle, an oil and gas company will experience a multitude of influential events. During this time, oil and gas management consultants can add value by providing a company with comprehensive solutions to its operational and financial challenges. Perhaps your oil and gas company has recently experienced one of the following scenarios:
1. You’re acquiring an oil and gas company, so you’ve just experienced tremendous growth. With that excitement comes welcomed tasks that may require acquisition support, structuring and refinancing support. Oil and gas consultants can help your company make this a seamless transition by helping with:
- Fine-tuning of your internal organization.
- Evaluation of your corporate strategy.
- Acquisition due diligence.
- Properly accounting for your acquisition, including purchase accounting and valuation.
- Operational/financial concerns like understanding the risks to be assumed and critical contracts to be assigned.
- Transaction integration, for example, identifying all state and federal tax reporting matters.
2. You want to stay one (or ten) step(s) ahead of the competition in the oil and gas industry.
- Innovation is a crucial part of any business’s success.
- Stay ahead of your competition by implementing the latest technology systems and state-of-the-art data integration processes with advice from industry experts.
3. The Financial Accounting Standards Board (“FASB”) has released new standards (i.e. new revenue recognition regulations) potentially impacting oil and gas companies. So, you’re scrambling to:
- Ensure you have all components necessary to abide by these newly imposed rules of doing business.
- Choose whether to attempt spending resources to train employees on the updates OR enlist the help of an oil and gas consulting firm with seasoned revenue recognition consultants to assist in compliance with the new regulations.
An oil and gas consulting firm can advise clients on the implementation of new or updated standards.
4. There’s a bit of uncertainty looming in the air of the oil and gas market. This week, crude oil dipped to a new April low at sub-$50/barrel. Global political implications are affecting the oil and gas market, causing investors to be wary of confidence in OPEC production cuts/promises. Let an oil and gas consulting firm help prepare your company for what’s next.