Welcome to the first of 4C Associates’ quarterly Oil & Gas sector update. This bulletin is aimed to provide you with a short overview of the current occurrences within the sector, as well as key information that is critical to anyone working in the industry. Included in the bulletin, you’ll be able to find crude oil prices, company updates, opinions on where the sector is headed and how 4C is supporting procurement in the industry.
Relative to historical prices, there has been a recent suppression in crude oil cost, where potential rebound in its value are expected due to a generally buoyant global economy, in accordance with several supply restrictions due to country sanctions or conflict. Focus on the major oil producers have also been re-directed to address the need for long term hydrocarbon demand, alternative energy source and new growth markets. E.g. Shell & BP’s recent acquisition of an electric vehicle charging station manufacturer. There has been an upturn in profitability ever since oil producers were forced to address their costs of production, especially so when oil prices in 2015 reached a low of less than $30 per barrel.
4C Associates have commenced work on the Spirit Energy account for the past 7 months and have since been managing the on-going Indirect Procurement requirements, building strong stakeholder relationships and using our previous experience of the Oil & Gas industry to develop category strategies across IS, FM, HR, Professional Services, Legal Services and Travel for 2019 onwards to support the new business requirements and departments since the creation of Spirit Energy’s joint venture with Centrica PLC. One of the key successes has been to re-tender and award the Travel Management Contract to an alternative provider who could support the future vision of the organisation.
The team working with Spirit Energy have also been responsible for supporting the Procurement Operations team, providing supplier on-boarding checks, generating and assessing scorecards and undertaking the cleansing of vendors within the ERP system to ensure that everything is streamlined.