Impact of oil price volatility on production and business of oil and gas companies and measures to cope with falling oil price
Abstract
Oil price fluctuations will have a direct impact on the performance of oil and gas companies in different ways. In the context of oil price plunge which shows no sign of recovery, oil and gas companies have rolled out several measures, including reorganisation, slashing investments, cost savings, improving the quality of value chain management, and use of financial instruments, to cope with the falling crude oil prices. The paper outlines the impact of oil price plunge on the production and business of oil and gas companies and proposes measures to overcome the period of price fluctuations.
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