Turn compliance into competitive edge by optimizing safety and environmental costs

P. Moran, Associate Director, Navigant, Houston, Texas Since the collapse of oil and gas prices in late 2014, many energy companies have taken steps to delay capital expenditures (CAPEX) and reduce operating costs to slumping markets. Although prices have stabilized since the steep drops of 2014, most market participants agree that low oil and gas prices are expected to persist for another 3 yr–5 yr, and that the present market situation will continue to demand a focus on cost cutting to maintain competiveness. When companies tighten belts, safety and regulatory compliance are often designated as exempt from cost cutting, so that companies do not negatively affect performance relative to o