Improving operational performance in the Energy Sector

It’s more important than ever to make performance improvement at your company a priority. The next generation of KPMG’s Performance Improvement offering, provides proprietary data-driven insights combined with industry experience to enhance commercial performance, optimize costs and unlock capital to invest in new opportunities. Leveraging proprietary data sources and benchmarks, Elevate brings together thousands of industry-focused practitioners and hundreds of data scientists to offer businesses rigorous and practical insights that create rapid and sustained EBITDA impact.

Olli Valikangas

Olli Valikangas

Principal, Energy and Natural Resources, KPMG US

+1 312-665-3436


Video transcript

Hi,

I'm Ollie Balikangas and I'm one of our lead partners for the performance improvement offering for energy clients at kpmg in the us. I'm excited to introduce our new performance improvement offering called elevate and to share some themes around how our approach is helping companies in the energy sector to enhance their performance. You know our sector like many others has been impacted by multiple market forces, ranging from the impacts of coburn to geopolitics and an esg agenda that continues to pick up speed each day, and through our work across the oil and gas to chemicals to power and utilities chain; we see how each one faces a nuanced set of pressures, but when it comes to performance, our elevator approach addresses three of the most common themes we see driving value among successful companies in energy.

First, harnessing new and innovative ways to apply data and analytics to identify previously unseen value creation opportunities and unlock new ways of working. For example, in upstream we're working with companies to provide deeper insight on well-level production and maintenance performance as a foundation to unlocking volume and cost opportunities; or in more product oriented oil field services or chemicals businesses we're using transaction level data to construct new views of product, customer, and market profitability as a basis for commercial and pricing optimization.

Second, investment decisions and high grading portfolios with a robust value lens. For example, as the energy sector embraces digital, there's a real need to ensure clear understanding of the value levels and capabilities that move the needle on performance and then prioritize digital investments accordingly in order to ensure impact versus simply good intent; or at a more macro level in fuel retail for example, taking portfolio evaluation to the next level through predictive modelling of location performance by leveraging hundreds if not thousands of external data signals.

Third, responding to changing energy use dynamics and considering how the energy transition will impact business and operating models. For example, capital allocation and investment in new energies, how can players from power utilities to oil and gas participate in hydrogen or electrification or multitude of new technologies; or even how to most efficiently and effectively meet regulatory reporting requirements which will no doubt continue to strengthen.

Undoubtedly the energy sector has proven itself resilient time and again but in any market, especially the current market focus on bottom line performance remains as important as ever.

If you're interested to learn more about our work in the energy sector, get in contact and let us help you elevate your performance.


 

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