The Massive Opportunity Waiting for Better Oil and Gas Asset Management

In this article:

• Why oil and gas operators should be selling more of their idle assets
• How they could be getting more for what they sell
• The PR win they’ll gain when they sell the right way

We’ve already talked about the opportunity for the Global 2000 enterprises to generate free cash by selling unused assets. When we share these numbers, people are consistently astounded to learn how big they are:

• $189 trillion: the total value of assets owned by the Global 2000 in 2018, according to Forbes.
• $12 trillion: the annual procurement spend by the Global 2000 (our estimate based on several sources, see image below).
• $3 trillion: the amount of free cash that the Global 2000 could generate by selling just 2% of their idle assets (conservative estimate).

As Brian Aoaeh pointed out, these numbers are so huge that even a small improvement can have a dramatic effect. Their size means that even when you zoom in to individual verticals, the numbers stay almost as impressive.

One of the Requis team’s primary industries is energy, and here we can offer an even more focused picture of the potential gold mine in asset disposition that most operators haven’t tapped into yet.