2015 was a tough year for oil and gas. Nine of the twelve S&P 500 companies posting top losses last quarter were E&P firms, and according to a recent Bloomberg article, one-sixth of smaller, independent O&G producers have debt payments greater than 20% of revenue.The silver lining? It turns out the same market conditions crushing O&G firms’ top lines just may help salvage their bottom lines. With commodity prices, demand for O&G-related products and services, and other cost-driving forces at record lows, those who systematically take advantage of market movements can drive large, sustainable cost reductions. Through the use of cost modeling and should-cost analysis (explained in greater detail below), we’ve seen E&P, midstream, and downstream Oil and Gas companies consistently drive an incremental 5% -20% savings in supplier negotiations through the recent downturn.