With oil prices at a multi-year low, oil companies are re-evaluating their investment in projects and cutting expenses across the entire company as they prepare to face a deteriorated outlook.
The expenses associated with running and maintaining oil sites is one of the many areas that have potential for cost reduction. One way to manage your operational expenses is to use vendors for areas of work that are not your core competency, such as emergency response services or rope rescue standby teams.
In addition to improved safety, here are three ways that an external vendor can reduce your emergency response costs.
A third-party company that specializes in emergency response will have more expertise and experience than an in-house team because they regularly rotate or work at a variety of sites for different companies. In addition, being part of a specialized company puts rescuers in more regular contact with subject matter experts and get more exposure to issues and techniques than an in-house team could access.
When you have employees, you have a certain commitment to them, such as relocating them or finding them other positions if their role is no longer needed, or paying severance if you are laying them off. In addition, you don’t need to deal with unions when negotiating salaries or the work conditions.
With outside vendors, you can commit on a project-by-project basis and deal directly with the company. If you no longer need the vendor’s services, you can terminate the contract.
Companies that specialize in emergency response and rescue are able to spread the cost of overhead, such as equipment and training, over many projects for different clients, at different sites. Since they specialize in this field, their cost of training and maintaining the skills of their workers are also lower because they have their own trainers.
Oil companies around the world are looking for solutions to help them weather the drastic decrease in oil prices. Reducing costs by using external vendors rather than an in-house solution, whether it’s for emergency response, or other areas that aren’t the company’s core competency, is just one of the strategies companies can pursue to help them reduce expenses without affect the quality of the services.
To learn more about how to pick the right emergency response team for your oil, gas or mining projects, contact Steve Gruber at email@example.com.