Peter Brady, vice president Asia Pacific and global products at CWT ERM, observed that the protracted downturn in the offshore energy market meant that cash-strapped companies can no longer “fix a problem with money”, but rather they need to streamline their operating processes for a long term benefit.
“For the first time we have seen that companies are now inward looking. They are looking at how to lower their unit cost across the board,” Brady told Seatrade Maritime News. “Most are asking how to survive with oil below $50 per barrel for the long term.”
While the difficult offshore market has led to significant spending cuts, travel remains a key function for these companies to maintain their operations at oil rigs and fields, which need to be served by crews round the clock.
By consolidating logistics and business travel, CWT ERM believed that it can help companies save a minimum of 15% through tightening and streamlining unconsolidated travel programs.
The use of technology such as virtual cards would also enable 100% transaction matching and ensuring safety against fraudulent transactions, according to CWT ERM, a division of Carlson Wagonlit Travel (CWT).
Managing staff and contractor travel in the energy industry has always been a complex process that requires arranging commercial travel like flights and logistics like helicopters to the rig, as well as chartered flights to possible remote landings that need ground transportation.
Brady highlighted that in the tough market today, it has become more important for companies to streamline the often complex travelling process, achieve cost efficiency and at the same time eliminate non-compliant travel decisions within the company.
“Companies need to transform and evolve for the long term. If travel arrangements are done independently by each worker it will be hard for the company to analyst where and how that money is spent, and there will be no data to project long terms savings or know where to cut costs,” he explained.
CWT ERM boasts more than 300 clients globally and serves 70% of the exploration and production oil majors, oilfield service and drilling companies.
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