By Simon Tysoe

Prior to the recent collapse in oil values, prices existed at over $100 a barrel for over three years. It made the economics of oil exploration, production and sale comparatively straightforward, but embedded costs into the industry.

More recently, a dip in demand and Saudi Arabia’s decision to maintain its production levels saw prices plunge to below $40, making it uneconomical for many oil producers to continue exploration and production. All sub-sectors of the industry have raced to reduce cost and right-size their businesses. New terminologies such as ‘Fit for 50’ circulated as oil majors adjusted themselves to the new reality.