“Oil Prices Fall to Six-Year Lows” reads a recent New York Times headline. This recession has reminded the oil and gas sector of the challenges of being in an industry where revenue is directly tied to a commodity. Conventional wisdom dictates that prices will rebound; however, the only thing people seem to be able to agree on is that nobody can predict when that will happen. So what should business owners do in the meantime? Communicate with stakeholders, manage expenses, and be strategic about the changes you make to your company. These are best-in-class practices worth taking on.
Keep in close contact with stakeholdersOil and gas exploration companies are used to fluctuating commodity prices. The questions to answer are, “How long can we continue at this pace?” and “What’s the impact on the organization?” Then communicate that information to important stakeholders, from your professional services team to key employees to the board.
If you’re not communicating, people assume the worst. But if you’re transparent about the company’s current state and forecast for its future, you’re fostering a “we’re in this together” culture, which is the surest path to success.