UK oil & gas firms ‘could tap into £20bn reservoir’

UK oil and gas firms could have access to a £20 billion investment reservoir if they improve their working capital management. That’s according to a new report by service network PwC […]

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UK oil and gas firms could have access to a £20 billion investment reservoir if they improve their working capital management.

That’s according to a new report by service network PwC UK.

It tracked the success of companies with effective working capital in sectors such as exploration and production (E&P) and oil field services (OFS).

It found debt is becoming more expensive in the UK’s E&P and OFS fields and as a result many firms are re-evaluating capital expenditure and implementing long term cost reduction strategies.

The report states business leaders should complete “a robust working capital benchmarking exercise” and carry out “diagnostic reviews to identify quick wins and deliver longer term strategies” to boost revenue performance”.

It adds while the findings show considerable results from working capital improvements in recent years, there is still “plenty to go for”.

Daniel Windaus, Working Capital Partner at PwC, said: “It is clear oil & gas firms can and should unlock cash from working capital across the board, particularly given the real economic cash constraints being placed on the industry as a result of low oil prices.”