Abstract
The E&P sector faces the seemingly conflicting imperatives, to cut costs in response to the supply glut and low natural gas and liquids prices, but also, to invest to meet the world's longer term needs for roughly 40 MMb/d of new liquids production by 2030. Moreover, some of this growth must come from higher-cost resources, such as deep-water projects, oil sands, and difficult international frontiers. A cost transformation that is premised on an appropriate capabilities-driven strategy can resolve the seemingly conflicting imperatives - to cut costs, and to invest in growth.
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