The oil and gas industry is a cyclical business. For every top there is a bottom—it’s the length and depth of the bottom that keeps us up at night.
At the lowest points of the cycle, industry veterans often spend time comparing current challenges with those of past downturns in an effort to avoid mistakes and find a road map for survival—or, better yet, position themselves for when markets turn upward. This thinking is referred to as normalcy bias, a mental state people enter into when facing a disaster. Unfortunately, it causes people to underestimate both the potential for disaster as well as the extent of damage should one occur.