It’s time to innovate and evolve says McCallum

James McCallum, chief executive at energy services company LR Senergy, a part of Lloyd’s Register Group, believes this is a defining moment for the energy industry. He tells Petroleum Economist why

As the oil price hovers around $65 a barrel, we are embarking on a crucial period that will define the industry’s future. Spiralling exploration and production costs are price differentiating energy plays and it is clear the current cost base cannot be sustained.   Standard business practice by the oil companies in a commodity price collapse is to firstly cut contractors, followed by a review of internal resources and restructuring to cope with the major loss in revenue. The job losses this time have happened much more quickly than in previous downturns. With financial reporting now every quarter rather than on an annual basis, the necessary adjustments have had to be made promptly in respon