To survive the lower-for-longer price market, oil and gas companies need to rethink their strategies for major offshore projects. With oil prices still trading around the $50/barrel mark, oil and gas companies will likely revisit costly field development projects, as BP plc did late last year with Mad Dog 2 development project . The company was able to reduce project costs through system optimization, collaboration with co-owners, simplification of the design using industry-led solutions and competitive bidding to capture deflationary pricing. BP also changed the development concept which can take advantage of standardized designs, BP spokesperson Jason Ryan told Rigzone. The Mad Dog 2 design now looks more similar to field development projects pursued in the past, Caitlin Shaw, research director with Wood Mackenzie, said. Does BP’s design signal the end of the oil and gas megaproject era? For the most part, yes, industry insiders told Rigzone. Megaprojects, particularly […]