April 19, 2024

Business Bib

Business & Finance Blog

4 Tips for Expanding an Oil & Gas Company

3 min read

Managing a fast-growing oil & gas company can come with a number of unique challenges, especially as you start to accommodate an overwhelming number of clients and new contracts. Of course, expanding and scaling up should be high on your list of priorities, so there’s no reason to shy away from the growth or limit the potential of your business. Instead, try utilizing the four tips below to streamline the process of expanding your oil & gas company’s ability to cater to additional customers and regions:

1. Hire a Specialized Accounting Firm

If you’ve been handling all of your accounting independently, you’ll be pleased to learn that there are firms out there that can manage your petroleum accounting needs. For example, https://www.copas.org/ is a leading provider of accounting and professional development for oil & gas companies. With the help of a specialist accountant, you can increase the accuracy and efficiency of your accounting practices while also reducing the clerical burdens placed on your in-house employees. 

2. Upgrade Management Software and Other Integral Technologies

Once you’ve outsourced your financial management needs, you may want to investigate new software and hardware solutions that can help you keep track of your workload and client base more efficiently. Primarily, you should be researching software that accommodates inventory and account management, custom data analytics, and automated billing. Additionally, you could have your equipment inspected and reviewed to determine if there are any upgrades that could reduce your company’s resource usage. 

3. Implement a Cost-Cutting Strategy

Saving money on unnecessary expenses and optimizing your budget should be next on your list of things to do. Scaling an oil & gas company can become expensive if you’re not keeping close track of your expenditure every step of the way. This would involve reviewing regulatory guidelines, revenue history, and drilling or other in-field work practices that could be optimized in a cost-saving manner. For example, some oil & gas mining companies are able to save by improving their horizontal drilling procedures or by drilling longer wells via the use of super fracking. Other examples of cost-cutting strategies that can be implemented in the office include cutting unnecessary staff members, postponing new projects, optimizing office operations, and adopting new energy-efficient technologies. 

4. Practice Vertical Integration

Vertical integration can help you reduce your company’s dependency on external aspects of the supply chain. By bringing parts of the supply chain into your company, you’ll simplify the process of taking on new contracts and deploying equipment and workers to new job sites. By avoiding the outsourcing of equipment and service contracts, you can avoid any issues that might arise from having to deal with a diverse supply chain. 

Book a Meeting with a Consultant

In addition to heeding the tips given above, it would be wise to book a meeting with a consultant who has experience in advising the management of business within the oil & gas industry. Sometimes having a direct conversation with a person who has extensive experience in this field can be more helpful than any independent research you conduct online.